Hedge Funds

SEC bars one manager, fines another


The Securities and Exchange Commission has barred Edward Strafaci, the former trader for fallen hedge fund Lipper Holdings LLC, from the securities industry.

Lipper pleaded guilty in Manhattan Federal Court in August to charges of artificially inflating the value of two of Lipper's hedge funds. Prosecutors said one of those funds was valued at $722 million but liquidated at $365 million. The convertible bond hedge funds collapsed in October 2002, bringing shame and scandal to firm founder Ken Lipper, a former Deputy Mayor of New York. Lipper was never charged with any wrongdoing.

In a separate regulatory action, the