U.S. SEC bars fund adviser from securities industry

Reuters
The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

(Reuters) - The U.S. Securities and Exchange Commission said on Wednesday it barred hedge fund adviser Owen Li from the securities industry for making false statements to investors that lead to the collapse of a fund.

The U.S. Attorney's Office for the Southern District of New York also announced criminal charges against Li, whose firm is Canarsie Capital LLC.

Li, a portfolio manager of Canarsie Capital Fund Master LP, a hedge fund, made false statements to investors and prospective investors about his personal investment in the fund, the SEC said in a statement. (http://1.usa.gov/1RSSvX9)

He also reported fictitious trades and omissions to the fund's prime brokers to avoid margin calls and obtain more margin for the fund, according to the SEC.

Canarsie Capital Fund Master lost about $56.5 million, which is nearly all of its assets, from Dec. 31, 2014, to Jan. 16, 2015. In January 2015, Li liquidated all long positions in the long/short equity portfolio.

Monetary sanctions are expected to be ordered in the criminal proceeding, the SEC said.

(Reporting By Arathy S Nair and Alan John Koshy in Bengaluru)