The Securities and Exchange Commission has filed a complaint against Barry Bingham and Bingham Capital Management Corp. Between mismanagement and misappropriation of funds, Bingham completely depleted the assets of Bingham Growth Partners, a hedge fund managed by the company.
Bingham allegedly provided share holders slanted information and actually omitted information in order to scheme on at least 22 investors in Growth Partners.
Bingham collected a total of $1.8 million in the hedge fund, of which approximately $459,483 in the fund had been offered and sold dishonestly.
In addition, the SEC also believes that Bingham embezzled about $141,637 from the hedge fund, including up to $34,638 in client assets as "soft dollar credits."
SEC also accuses Bingham of acting through Bingham Capital Management, in order to receive compensation in the trade, advised clients to invest in securities.
In a criminal case, Bingham was sentenced to 12 months and one day in prison and then three years of supervised release. The court also fined him $1,000, and ordered him to pay $105,572 in restitution.