Hedge Funds

SEC files enforcement action against sham hedge fund manager

by

The Securities and Exchange Commission has filed a complaint against Michael Beckford, former managing member of Fanam Capital Management, claiming he squandered nearly $5 million of investors' money through gambling, misappropriation, and trading outside the fund's risk parameters.

Beckford managed the Cleveland-based Fanam Fund I, which he billed as a hedge fund. The SEC claims Beckford lost about $777,000 of the fund's money through gambling and about $3,877,000 through risky trading that was outside the fund's stated investment objectives and risk controls. Beckford misappropriated another $175,000 for personal expenses, according to the complaint.

Beckford's firm was not registered with