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The company argued that it set aside a $228,000 reserve as an accounting decision, and not to offset investors’ losses.
The SEC said it made the decision to drop the case in light of the division of enforcement’s recommendation that it do so last October following the June 2006 Goldstein v. SEC decision that prevented the Commission from requiring hedge funds with 15 or more clients to register and share their financial records
Increasingly, hedge funds are becoming successful at avoiding government oversight.