Injunction and Industry Bar Obtained In Offering Fraud Case

Defendants allegedly raised at least $2.65 million through the offer and sale of limited partnership units in the Shaner Fund, L.P., misrepresenting and omitting to state material facts to investors concerning the intended use of investor proceeds and the risks of investing. In particular, the defendants allegedly informed investors that their funds would be used to trade in commodity futures contracts, specifying that a portion of their funds would be committed as margin for trading and the remaining funds would be segregated and held by a clearing agent for the Fund and be invested in 90-day Treasury Bills. However, hundreds of thousand in investment proceeds were allegedly misappropriated. The SEC also brought an administrative proceeding against these defendants.