Hedge Funds

Authorities looking for KL fund chief

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A principal of the KL Group, the Florida-based hedge fund that was accused by the SEC of defrauding investors out of millions, may have fled the U.S.

Authorities are investigating whether 34-year-old Won Sok Lee left the country for Korea, according to lawyers for the plaintiffs. The SEC suit against the KL Group alleges the hedge fund and its three managers defrauded investors of $70 million. The suit claims KL forged account statements to trick investors into thinking the fund was generating annual returns as high as 150%.