The U.S. Securities and Exchange Commission has a high closer of its own — a case against a hedge fund manager. The  SEC has filed securities fraud charges against Burton Friedlander,  two investment management entities he controls, and three Friedlander-managed investment funds.

The defendants are  charged  with market  manipulation and with fraudulently  inflating and misrepresenting the value of one of the funds, Friedlander International Limited, a hedge  fund.

Among  other things, the SEC alleges that Friedlander manipulated the common stock  of a company in which the hedge fund held an interest at the end of  each  month  during the last five months of 2000. The commission also alleges that Friedlander caused approximately US$2.4 million in fund redemptions to be made at the inflated fund values for his and his entities’ benefit — to the detriment  of  the funds’ other investors.

The  commission is seeking preliminary and permanent injunctions, an asset freeze against  Friedlander, the appointment of a receiver, and other relief.