The Securities and Exchange Commission has launched a probe into a hedge fund run by the KL Financial Group.
In early March, the SEC was seeking to freeze fund assets with a restraining order, an effort aimed at preserving remaining capital for investors. At its peak, the hedge fund had assets of roughly $300 million, but later suffered substantial trading losses. The bulk of investors, who lost up to an estimated $25 million, were individuals from the affluent Palm Beach, Fla. area. In addition, the Federal Bureau of Investigation was looking into the fund in cooperation with the SEC's