Jay Allen Sanford 11:06 a.m., May 22
SEC Halts Allegedly Fraudulent Encinitas Trading Scheme
The Securities and Exchange Commission today (May 16) filed an emergency enforcement action to halt an allegedly fraudulent trading scheme conducted by John Clement of Encinitas. Clement, who did day trading from his home, falsely promised returns of 1% to 2% a month to investors in his Edgefund and The Edge Fund hedge funds, says the agency. The SEC says Clement claimed that his trading was profitable. Actually, it was unprofitable, and Clement "stole $295,000 of investor money to pay for cars, vacations, jewelry and other personal expenses," according to Michele Wein Layne, associate director of the SEC's Los Angeles office. Clement had raised at least $2.1 million from 22 San Diego investors. A federal judge in San Diego granted the SEC's request for an immediate asset freeze.