Allison Kernisky is an Associate in the
Miami office
On August 19, 2013, the SEC announced that it settled with a
hedge fund and its manager (the defendants) and required them to
admit wrongdoing. In the consent, the defendants admit to a series
of facts, including that the manager took a $113.2 million loan
from the fund to pay his personal taxes and failed to disclose the
loan to investors for five months; that the defendants secretly
favored certain customer redemption requests at the expense of
other investors; and the defendants conducted an improper short
squeeze in certain distressed bonds. The settlement does not
immunize the defendants from any future criminal proceedings and
prohibits the defendants from publicly denying liability. Further,
the defendants cannot contest the facts in any future proceedings
involving the SEC based on the same set of facts. While the consent
stops short of finding that the defendants' actions constituted
a violation of the
