Hedge Fund Manager Settles Fraud Claims

Hedge fund manager Edward Thomas Jung settled Securities and Exchange Commission allegations that he defrauded 60 investors by using false performance reports to cover up $21 million in losses over four years in his Strategic Income Fund.

Without admitting or denying wrongdoing, Jung, a former trader at the Chicago Board Options Exchange, and his firm, CBOE market maker E. Thomas Jung Partners, agreed to be subject to stiffer penalties if they violate anti-fraud laws in the future.

Jung also will be barred from the industry, said Kristopher Heston, the SEC senior enforcement attorney who handled the case. No financial penalties were assessed.

Jung’s lawyer, Jeff Colman of Jenner & Block in Chicago, declined to comment.