The Securities and Exchange Commission has charged GLG Partners, a subsidiary of London-based hedge fund giant Man Group, for internal control failures.
In a statement released Thursday, the SEC claimed that GLG has agreed to pay about $9 million to settle claims that it overvalued a coal-mining asset purchased by former GLG money manager Greg Coffey between 2008 and 2010. The overvaluation resulted in inflated fees to GLG and the overstatement of assets under management in the holding company’s filings with the SEC.
The regulator also said it has established a fund in which the London-based hedge fund firm agreed to reimburse money to harmed fund investors, totaling $750,000.
Coffey, who left GLG in October 2008 to join Louis Bacon's Moore Capital Management, retired from New York-based Moore and the hedge fund industry in 2012 after losing money for two years.