A United States District Court judge has fined a former Los Angeles mutual fund manager $1 million in restitution, interest and penalties for misrepresenting the value of two worthless funds as $138 million, combined, to two brokerage firms in order to obtain margin loans.

Michael Carnicle, now of Las Vegas, Nev., must repay $443,323 plus interest for "ill-gotten gains," U.S. District Court of Utah judge Tena Campbell ruled Sept. 20 in a case brought by the Securities and Exchange Commission. The judge also fined Carnicle $443,323 in civil penalties. With interest, Carnicle owes the court more than $1 million.

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