Shuttered Hedge Fund TCA Accused by SEC of Overstating Revenue

TCA Fund Management Group Corp. is being sued by U.S. regulators over claims that the Florida-based hedge fund that raised money for loans to businesses defrauded investors by using improper revenue-recognition methods to boost profits.

The hedge fund broke the law by recording loan fees as income when terms were only agreed upon instead of waiting until funding was completed, falsely boosting revenue reported to investors from April 2010 through December 2016, the Securities and Exchange Commission said in a complaint filed Monday in federal court in Miami.

From 2016 to November 2019, the SEC said, TCA also inflated revenue ...