Minn. Hedge Fund Manager Accused Of Bilking Investors

MINNEAPOLIS (AP) — The Securities and Exchange Commission has accused a Minneapolis-based hedge fund manager of bilking investors.

The agency filed a complaint in federal court Monday against owner Steven Markusen; his investment advisory firm, Archer Advisors LLC; and employee Jay Cope.

The complaint accuses Archer Advisors, Markusen and Cope of bilking investors in two hedge funds out of more than $1 million under the guise of research expenses and fees.

The SEC says management fees earned by Archer Advisors were shrinking due to the funds' worsening performance. So Markusen allegedly caused the funds to reimburse Archer for fake research expenses, and routed much of that money to his checking account and spent it on country club dues, boarding school tuition and a Lexus.

Attorneys for Markusen and Cope did not immediately return phone calls Monday.