Hedge Funds

Dallas firm Gryphon to fight SEC charges


The SEC has filed a lawsuit against Gryphon Management Partners and Edward "Bucky" Buchanan Lyon IV, a portfolio manager, for allegedly running an illegal trading scheme and employing insider information. Dallas-based Gryphon has denied the charges.

The case, filed Tuesday in the U.S. District Court for the Southern District in New York, maintains that Gryphon, which manages an estimated $265 million, generated more than $6.5 million of illegal profits between 2001 and 2004 by investing in at least 35 private investments in public equities and then shorting all but one of the issuers' stocks, a prohibited transaction.

The complaint