A former Marine-turned-hedge fund manager has been accused by the Securities and Exchange Commission for bilking $1.78 million from investors through his Chicago-based hedge fund Marketaction Capital Management.
The SEC complaint filed Tuesday said that Clayton Cohn, 26, invested less than half of the money he received from 24 investors and used the rest to support his lavish lifestyle.
Cohn also concealed losses from his investors by fabricating investor account statements and forging brokerage statements.
The court has granted the SEC’s request to temporarily freeze the fund’s assets. The Commission is also seeking further penalties to Cohn and Marketaction Advisors
Marketaction claimed to have $2.2 million in assets under management as of December 2012.