The Rupay-Barrington Financial Group of Arlington, Tex. issued a statement July 17 denying knowledge of a lawsuit the SEC filed against the firm accusing it of fraud. The SEC's charges were posted on its website July 12, and accuse the company of making improper loans to its affiliates resulting in inflated net asset values of its three funds. It also charges the companies with illegally suspending investor's redemptions, according to the SEC filing.

The lawsuit names Rupay-Barrington Financial Group, the funds' manager, Rupay-Barrington Capital Management, and the fund company, Rupay-Barrington Funds. Rupay-Barrington Capital Management is accused of forcing the funds to carry $250,000 worth of receivables which it knew could not be paid for by Rupay-Barrington Financial Group.

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