Injunctions and Monetary Sanctions of Over $350 Million for Hedge Fund Fraud

Defendant Battoo was an asset manager. He and his two companies, the BC Capital entities, defrauded numerous investors worldwide by claiming to achieve exceptional risk-adjusted returns while concealing huge losses and misappropriation of investor funds. The fraud began no later than 2008, when Batoo hid major losses caused by a failed derivative investment program and leveraged investments in Madoff feeder funds. In addition, around $50 million was misappropriated so that Battoo could live the high life. Fraudulent account statements were used to deceive investors and auditors. Defendant Sunderlage acted as an unregistered broker-dealer and investment adviser in violation of a previous regulatory bar, directing investments into Battoo’s investment program.