SEC Freezes Assets of `Ponzi-Like’ Scheme By Purported Venture Cap Fund Manager

The Securities and Exchange Commission filed suitFeb. 27 in the U.S. District Court for the Southern District of New York against a purported venture capital fund manager who allegedly used money from three investment funds to pay phony returns to a different fund’s investors (SEC v. Gray, S.D.N.Y., 15-01465, 2/27/15).

In a release, the commission said it obtained an emergency asset freeze order halting the “Ponzi-like scheme.”

Pre-IPO Shares.

According to the commission, defendants Gregory W. Gray Jr. and his firms Archipel Capital LLC and BIM Management LP solicited money for a fund created to invest ...