Feb. 11--A federal jury concluded Tuesday that hedge fund manager Marlon Quan mislead and deceived clients about investments he made on their behalf with former Wayzata businessman Tom Petters.
The jury also found on behalf of the Securities and Exchange Commission (SEC) that hedge funds managed by Quan also violated federal securities laws.
The verdict followed a two week civil trial involving Quan and his Connecticut-based hedge funds, Acorn Capital Group and Stewardship Investment Advisors.
According to trial testimony, Quan's investors lost $221.4 million when Petters' $3.65 billion Ponzi scheme collapsed in September, 2008.
The SEC is seeking the return of $33 million in commissions and fees collected by Quan through his dealings with Petters Company Inc. (PCI).
The civil case against Quan alleged that he failed to implement safeguards as promised to minimize risk in the investment with Petters and that he did not inform clients when short-term loans to Petters became delinquent.
David Phelps -- 612-673-7269
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