The Securities and Exchange Commission filed charges last Friday against California-based CMG Capital Management Holding Co. and its key executive, Keith Gilabert, Compliance Reporter reports. The SEC alleges that not only did Gilabert and the firm pocket funds, they also misled investors about returns.

Through this illegal scheme, which went on from September of 2001 to January 2005, Gilabert and the firm raised $14.1 million through selling limited partnership interests in a hedge fund called the GLT Venture Fund. CMG was the investment advisor of the fund and told investors that the fund had made 19% returns and therefore charged fees based on that performance figure.

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