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U.S. Securities and Exchange Commission

Northshore Asset Management LLP, et al.

In February 2005, the SEC filed an emergency enforcement action against Northshore Asset Management LLP and its three largest shareholders, Kevin Kelley, Glenn Sherman, and Robert Wildeman. The SEC alleged that the defendants obtained control over two hedge funds-Ardent Research Partners, L.P. and Ardent Research Partners, Ltd. (Ardent Funds)-and fraudulently diverted tens of millions of dollars of the funds' cash assets for their personal use. As a result, the Ardent Funds became illiquid and were unable to meet investor redemption requests. 

In October 2005, the SEC amended its complaint to add securities fraud claims against Francis Saldutti, the Ardent Funds' founder and investment adviser, and Douglas Ballew, Northshore's former CFO. According to the amended complaint, the SEC alleged that Saldutti made material misrepresentations and omitted important facts to Ardent Funds investors regarding his transfer of Ardent Funds cash to Northshore and Northshore-related entities, and that Ballew participated in the fraudulent scheme. 

For more information about the SEC's action, you can read Litigation Release Nos. 19084 (Feb. 16, 2005) and 19449 (Oct. 31, 2005).

The Court has appointed Arthur Steinberg, Esq. as Receiver. For the latest information about the Receivership, you can visit the Receiver's website.



Modified: 02/15/2006