Hedge Funds

SEC targets KL Financial principals

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The Securities and Exchange Commission this week expanded its 6-month-old case the against the KL Financial Group, a Palm Beach, Florida-shop that allegedly lost $200 million in capital through trading losses and attempted to conceal those losses from existing and prospective investors.

Regulators are now seeking an injunction in absentia that would ban the firm's principals and traders Won Sok Lee and Ying Bae Kim from trading securities.

A default judgment was issued by the SEC this week against the two men who have been missing since regulators launched their probe into KL Financial in March.