SEC freezes assets of Hedge Fund

The Securities and Exchange Commission has frozen the assets of Chicago-area money manager and his quant hedge funds.

The SEC on Wednesday charged Belal Faruki and his fixed neural markets with lying to potential investors in his company's start-up hedge funds.

The SEC said, from January 2010 through October 2010 Faruki distorted allegedly on hedge fund performance track record, misstated that 5 million dollars has already been invested in the Fund for wealthy investors, and incorrectly that he had invested his own money into hedge-fund.

The SEC also charged that the Farukis system will cost one of the Fund's investors of $ 1 million.