In another example where elderly investors were the victims of an investment scheme, the SEC charged Colorado-based investment adviser Neal R Greenberg with fraud and breach of fiduciary duty in connection with the investment adviser's marketing of his hedge fund to investors.

According to the SEC's complaint, Mr. Greenberg portrayed his hedge fund as being suitable for conservative investors. However, the hedge fund's investments did not lend themselves to a conservative approach, including the use of leverage that contributed to substantial losses for the fund and its investors. In addition, the SEC alleges that Mr. Greenberg collected management fees from the fund of approximately $2 million that were not adequately disclosed to fund investors.

Most of the investors in Mr. Greenberg's fund were elderly relying upon income from their investments to help pay for their living expenses.

The SEC's order against Mr. Greenberg serves to initiate administrative and cease-and-desist proceedings, among other remedies.