On March 1, 2013, the SEC filed a civil injunctive action in the United States District Court for the Southern District of New York relating to the fraudulent offer and sale of limited partnership interests in two hedge funds, RAHFCO Funds LP and RAHFCO Growth Fund LP (“RAHFCO Hedge Funds”).
The SEC charged RAHFCO Management Group, LLC, Randal Kent Hansen, Hudson Capital Partners Corporation, and Vincent Puma with securities fraud and other violations of the securities laws, for engaging in a fraudulent scheme that defrauded investors out of more than $10 million.
The SEC’s complaint alleged that the RAHFCO Hedge Funds raised approximately $23.5 million from over 100 investors nationwide between 2007 and the funds’ collapse in May 2011. Additionally, the complaint alleged that the primary function of the Defendants’ scheme was to convince investors to invest in fraudulent pooled investments that purportedly traded in options and futures on the S&P 500 Index and in equities, then the Defendants siphoned off the invested funds for the Defendants’ own purposes.
The SEC’s complaint seeks permanent injunctions, third-tier civil penalties, disgorgement plus prejudgment interest, and other relief against all of the defendants.