Two managers of HMC International, a defunct hedge fund headquartered in Montvale, N.J., have agreed to pay $4.6 million after charges that they bilked investors to buy cars and trips, according to the Securities and Exchange Commission. Founder and manager Robert Massimi agreed to pay $1.46 million, while trader Bret Grebow will pay $3.1 million.

Grebow "systematically looted the fund's trading account," according to SEC documents. Between 2001 and 2005, the pair duped their 80 investors into believing the $12.9 million fund enjoyed returns as high as 68%, when in fact it had none.

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