Hedge Funds

SEC alleges fraud at Groundswell Partners


The U.S. Securities and Exchange Commission has frozen the assets of Groundswell Partners, a Waltham, Mass., hedge fund, and obtained a temporary restraining order against the fund and its manager, Mark Conway.

In a complaint filed in U.S. District Court on November 4 in Boston, the SEC alleges that Conway defrauded his clients by failing to disclose millions of dollars in losses. Conway also failed to disclose the fund's true assets and the trading strategy he was employing, the SEC said.

According to the SEC complaint, Conway - in an October 26 tape-recorded conversation with a partner of Groundswell -