Theorem Fund Services Settles with SEC for Failing to Stop Fraud

Theorem Fund Services LLC agreed to pay $122,271 in disgorgement, penalties, and interest on Monday to resolve US Securities and Exchange Commission allegations it failed to stop fraud on one of its private funds.

EIA All Weather Alpha Fund I, a private fund managed by EIA All Weather Alpha Fund Partners and its CEO Andrew M. Middlebrooks, was used in the managers’ scheme to misappropriate $39 million in investors’ money over a period of five years.

The fund received $1.6 million from 14 investors under the management of Middlebrooks and EIA, but Theorem failed to reflect its losses when sending ...