Page Perry

The SEC has charged a New Jersey-based hedge fund, Yorkville Advisors LLC, and officers with fraudulently overvaluing illiquid investments in order to attract investors to their hedge fund. Attracting more investors increases hedge fund fees, which are based on a percentage of the amount of money the fund manages. The charges are part of a larger SEC crackdown on hedge funds stemming from its “aberrational performance inquiry” ? i.e., investigating “too-good-to-be-true” investment performance claims.