U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20376 / November 30, 2007
SEC v. Daniel N. Jones and Azure Bay Management, LLC, Case No. 07-CV-1198 (W.D. Mich.)
SEC Obtains Emergency Relief Against Investment Adviser Firm and Its Owner For Fraud
The Securities and Exchange Commission ("Commission") announced that on November 29, 2007, it filed a civil action in the U.S. District Court for the Western District of Michigan charging Daniel N. Jones and Azure Bay Management, LLC ("Azure Bay") with fraudulent conduct.
The Commission's complaint alleges that Jones, a resident of Battle Creek, Michigan, and Azure Bay, his unregistered investment adviser, defrauded their private hedge fund client, The Addington Fund LP ("Addington" or the "Fund"). According to the complaint,
In an order dated November 29, 2007, the Honorable Judge Robert James Jonker entered a temporary restraining order against Jones and Azure Bay from violating antifraud provision of the Securities Act of 1933 [Section 17(a)] and the Investment Advisers Act of 1940 [Sections 206(1) and (2)]. The order, among other things, also freezes assets of Jones, Azure Bay, and Addington until further order of the court.
The Commission wishes to thank the Federal Bureau of Investigation in Kalamazoo, Michigan for its assistance in this matter.