7.13.2009 The SEC obtained a permanent injunctive order against Paramount Partners, LP (Paramount), a hedge fund, Crossroad Capital Management, LLC (Crossroad), Paramount’s investment adviser, and John W. Lawton (Lawton), who ran Crossroad. The SEC originally filed its action on February 18. The SEC alleges that Paramount had approximately 50 to 60 investors who invested as much as $9 million, and that Lawton and Crossroad engaged in a fraud in which they misrepresented Paramount’s assets and returns to investors. In the order dated July 13, Judge Ann Montgomery entered a permanent injunction against Paramount, Crossroad, and Lawton. The defendants consented to the order without admitting or denying the SEC’s allegations.
Click http://www.sec.gov/litigation/litreleases/2009/lr21135.htm to access the SEC litigation release.