Lake Shore Asset Management, a Chicago-based hedge fund, had $288 million of its assets frozen by a federal court last week, after regulators stated it overstated its holdings, according to Bloomberg News.

Lake Shore is run by Laurence Rosenberg, former chairman of the Chicago Mercantile Exchange, and manages $1 billion for investors and trades U.S. commodity futures contracts, according to the Commodity Futures Trading Commission.

A review of the fund showed that it had $466 million. The fund banned regulators from inspecting its accounts on June 14, which is a violation of the Commodities Exchange Act, according to the commission's complaint.

Lake Shore is a commodity pool operator, an investment group that seeks to aggregate money to trade futures and options on commodities and other financial instruments.

The commission's complaint contends that Rosenberg and other employees at the fund gave inconsistent statements to regulators regarding the fund's activity and that it has refused to make documents available to the agency. On June 14, Rosenberg allowed the National Futures Association to review Lake Shore's protected website, where it found that the fund had $466 million in managed accounts, "dramatically less than Rosenberg's $1 billion estimate."

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