Former hedge fund chief to pay $62M

May 8, 2009 10:29:04 AM PDT
The former head of a defunct hedge fund has been ordered to pay more than $62 million as part of a Securities and Exchange Commission fraud case. U.S. District Judge Kenneth A. Marra issued the order Thursday against Michael Lauer, who once ran Lancer Management Group. The order came after Lauer was found liable on SEC fraud charges last fall.

Lauer also faces a criminal trial in March on charges of falsely inflating the value of companies in the Lancer fund to collect hefty management fees. Lauer has pleaded not guilty, but one Lancer trader last month pleaded guilty to several charges involving manipulation of stocks.

The $62 million represents ill-gotten gains plus interest and will go to the SEC.

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