Stephen C. Bond of Walnut Creek , California was charged by the Securities and Exchange Commission (”SEC”) for fraudulently holding himself out to be a portfolio manager of the “Asenqua” and “Fireside” hedge funds. This elaborate hedge fund scheme was carried out alongside Silicon Valley hedge fund manager Albert K. Hu from 2001 through 2008 .
The SEC compliant filed in federal district court for the Northern District of California alleges,
Bond attended investor meetings along with Hu to solicit investments in the “Asenqua” and “Fireside” hedge funds. According to the SEC, Bond was portrayed at these meetings and in written materials as the funds’ portfolio manager.
While it does not appear Mr. Bond actually carried out any trades or implemented any of the trading strategies he and Mr. Hu discussed with investors, they believed him to be a legitimate professional with apparent insight into the securities market.
Mr. Bond made almost a million dollars for his part in defrauding investors. The SEC has charged him with violations of the anti-fraud provisions of the federal securities laws and seek to have him pay financial penalties and repay any gains illegally obtained.
With regards to Mr. Albert K Hu, he too was sued by the SEC in March 2009 for his involvement in the scheme. This case currently remains pending. In the meantime, he remains in custody following the filing of a related criminal action.