A federal judge ordered Nikolai Battoo and two companies he controlled, BC Capital Group S.A. (Panama) and BC Capital Group (Hong Kong) Limited, to pay a civil penalty of US $68 million and disgorgement and interest in excess of US $290 million related to an allegedly fraudulent scheme perpetrated on investors beginning in 2008. According to the SEC, Mr. Battoo was a hedge fund manager who claimed “exceptional risk-adjusted returns” and, through his BC entities, raised over US $400 million from investors by 2012. The SEC claimed that Mr. Battoo incurred major losses by 2008 because of a failed derivatives investment program and losses in Bernard Madoff funds. He also stole at least US $49 million of investor funds “so that he could live the high life during his scheme,” the SEC said. The SEC filed its complaint against Mr. Battoo and the two BC entities in 2012. The Commodity Futures Trading Commission also charged Mr. Battoo and four companies he controlled with fraud in 2012.