The Securities and Exchange Commission last week barred an Arizona-based mutual fund manager from the securities industry for failing to follow his own prospectus, which led to his fund’s collapse.

According to the SEC, the prospectus of the Z Seven Fund (ZSF) stated that it sought long-term capital appreciation and restricted the use of options. However, beginning in September 2009, Barry Ziskin and his firm Top Fund Management invested ZSF in put options on a larger scale and, as a result, suffered huge losses. Massive investor redemptions ultimately resulted in ZSF’s liquidation in December 2010.

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