The Securities and Exchange Commission today announced that the Honorable Barry T. Moskowitz, United States Judge for the Southern District of California, granted the Commission's motion for a preliminary injunction in its emergency action to halt an ongoing multi-million dollar securities fraud. The Commission filed its complaint on March 11, naming San Diego-based Global Money Management, L.P., (GMM) an unregistered private hedge fund, LF Global Investments, LLC (LF Global), which operated GMM, and Marvin I. Friedman, 65, of La Jolla, California, who controlled both entities. The Commission's complaint alleges that the defendants grossly overstated the assets of GMM to investors.

In addition to issuing a preliminary injunction against GMM, LF Global, and Friedman, the court issued orders freezing the assets of the defendants, prohibiting the destruction of documents, and ordering an accounting from Friedman. The court also appointed Charles LaBella as the permanent receiver over GMM and LF Global. Investors may obtain information about the receivership at or by calling 619-696-9200.

The Commission's complaint alleges that since 1993, the defendants have sold, in an unregistered offering, limited partnership interests in GMM, a purported private hedge fund that invested in securities, such as stock and stock options. While the amount of money actually raised is not known, Friedman has told investors at various times over the last several months that the hedge fund held assets ranging from $60 million to over $100 million. GMM's brokerage records, however, show that, since at least December 2002, the securities it holds have been worth no more than $11 million. In addition, Friedman touted his investment experience but failed to inform investors about his disciplinary history, including that he has been barred from association with any member of the NASD.

The Commission's complaint alleges that GMM, LF Global, and Friedman violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, as to LF Global, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and, as to Friedman, that he aided and abetted those violations of the Advisers Act. In addition to the emergency relief described above, the Commission seeks, from each defendant, permanent injunctions, disgorgement with prejudgment interest, and a civil penalty.