CROOK ALERT!!! Asset Manager Aletheia Research Accused by SEC of Fraud

Truth and Disclosure at Asset Manager "Aletheia Research and Management""

Aletheia is Greek for "truth and disclosure." Los Angeles asset manager Peter J. Eichler, Jr., of Aletheia Research and Management, is under investigation by the Securities and Exchange Commission for allowing favored clients to "cherry pick" Aletheia's most successful investments to the disadvantage of less favored investors in his $10 billion investment firm. Investors included Goldman Sachs, JP Morgan and the Royal Dutch Shell pension fund. Eichler's reports of outsize investment returns calls to mind the maxim "If it sounds too good to be true, it probably is too good to be true. Nevertheless, Eichler's reports of outsize returns attracted Goldman and Morgan Stanley who placed their clients' money with Aletheia according to a report in this morning's NY Times.

According to the NY Times Eichler lived in L.A. like a "Hollywood mogul, shuttling between his office and multimillion dollar Malibu and Pacific Palisades homes in a Maybach sedan." In full page ads in "Barrons" he likened himself to Warren Buffet and Peter Lynch.

Aletheia funds under management are down from $10 billion to $1.4 billion; the firm has filed for bankruptcy and is being sued by two investors. Goldman and Morgan Stanley have terminated their relationship with Aletheia.

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Comments 3 comments

AMFredenburg profile image

AMFredenburg 3 years ago from Southwestern New Hampshire

Sigh. It's beginning to seem as if the crooks outweigh the honest people in this particular industry.


Ralph Deeds profile image

Ralph Deeds 3 years ago Author

Very true. I don't do business with any of the Wall Street banksters, let alone hedge funds. Tnx for your comment.


f_hruz profile image

f_hruz 3 years ago from Toronto, Ontario, Canada

I just noticed your hub on this topic after reading your last CROOK / SCAM ALERT about the ATM employment cards ...

The SEC always comes into the picture after the barn burned down and all the smoke settled ... just like in the Bernie Madoff case.

Any idea what this Peter J. Eichler Jr. got for his 'financial ingenuity'? Probably 6 month in an exclusive resort, or 1 year on probation, eh? ... :)

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