The Securities and Exchange Commission has dropped a civil fraud case it filed in March of last year against investment firm Global Crown, sister company J&C Global Securities and two of its executives, Rani Jarkas and Antoine Chaya, for allegedly exaggerating performance of a hedge fund they ran, Cogent Capital Management, in order to hide losses.

The company argued that it set aside a $228,000 reserve as an accounting decision, and not to offset investors’ losses.

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