SEC Wins $27 Million Judgment in Bluepoint Fund Fraud Action

Investment funds and managers sued by the SEC for misrepresenting value and returns while charging excessive fees must repay investors more than $12 million and were also hit with over $3 million in prejudgment interest and more than $11 million in combined civil penalties.

The managers of Bluepoint Investment Counsel LLC, Chrysalis Financial LLC, and Greenpoint Asset Management II LLC are also prohibited from running or liquidating the fund now known as Alluvium or collecting any fees, Judge William Conley in the US District Court for the Western District of Wisconsin said in a final judgment Monday.

The Securities and ...