Hedge Funds

California manager settles charges over "inflating" valuations


Springer Investment Management and its president, Keith Springer, agreed to pay $50,000 to settle charges by the Securities and Exchange Commission that Springer falsely bolstered the overall performance of its Apollo Fund by inflating the value of a dot.com stock, the hedge fund's largest holding.

"Notwithstanding the dramatic decline in the price of publicly traded Internet stocks during the early 2000s, SIM continued to value the Internet company's shares at several times the price the fund had paid for them," the SEC charged.

In addition to paying the fine, SIM also agreed to retain an independent consultant to review