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.
12-14-12 LA Times "Alatheia Hedge Fund Manager Defrauded Investors, SEC Says"
- Aletheia hedge fund manager defrauded investors, SEC says - latimes.com
Regulators accused Aletheia CEO Peter J. Eichler Jr. of saddling his investors with losing securities trades while claiming winners for himself.