U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Michael Lauer, Lancer Management Group, LLC, and Lancer Management Group II, et al.

On July 10, 2003, the SEC obtained a temporary restraining order and asset freeze against a number of defendants involved in a billion dollar hedge fund fraud. The defendants included two hedge fund advisors and the principal that controlled these entities, Michael Lauer. The SEC also named in the civil action a number of hedge funds as relief defendants. The SEC’s complaint alleged that from at least March 2000 to the time the SEC filed its complaint, the defendants engaged in a scheme to over-inflate the performances and net asset values of three hedge funds. According to the complaint, the defendants systematically manipulated the month end closing prices of securities held by the hedge funds to overstate the value of the funds’ holdings in virtually worthless companies. The SEC alleged the defendants then provided unfounded and unrealistic valuation opinions to auditors to obtain audited financial statements.

The SEC has posted numerous litigation releases. You can find them by visiting the SEC's website and inserting the words "Michael Lauer" in the “search” box in the upper right-hand corner of the screen.

The Court also appointed Marty Steinberg, Esq., as Receiver over the defendants. For the latest information about the Receivership, please visit the Receiver’s website.


Modified: 05/16/2005