SEC Says GLR Manager Claimed Big Returns Before Fund Began
Investors who got into Californian John Geringer's GLR Growth Fund were told they were buying into a conservative vehicle that made profits even in the face of America's financial crisis. For instance, Geringer allegedly told them, the fund returned nearly 24 percent in 2008, when the Standard & Poor's 500 lost 38.5 percent, Reuters reported. Now the Securities and Exchange Commission is alleging that Geringer also claimed high returns for a two-year period before the fund even existed. Furthermore, Reuters said the SEC is alleging that Geringer consistently lost money with the fund, and also plowed cash not into securities, but to a pair of private technology start-up companies. Geringer also issued phony account statements to investors, regulators say. In a U.S. District Court complaint against Geringer, the SEC is now seeking a freeze of the company's assets, civil penalties, and disgorgement, Reuters added.