US v. Lay

Sixth Circuit Upholds Hedge Fund Manager Fraud Conviction


In this decision, the court upheld an instruction that permitted the jury to find that a hedge fund adviser had a fiduciary relationship with a client.

“[N]o hedge fund adviser could create a client relationship with an investor, but rather held only that the SEC had ‘not justified treating all investors in hedge funds as clients’” the Sixth Circuit concluded

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Reference Info:Decision | Federal, 6th Circuit, Ohio | United States

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