The Securities and Exchange Committee (SEC) has frozen the assets of a UK citizen who allegedly became involved in hedge fund fraud.
Around $1 million of assets held in Britain have been fenced off by the regulator, a move undertaken by the SEC without consulting with its UK equivalent, the Financial Services Authority (FSA).
Glenn Manterfield stands accused of stealing money from investors in hedge fund Lydia Capital – which he formerly co-owned and managed, the Times reports.
LeeAnn Gaunt at the SEC said that the freezing of UK assets had only been tried by the regulator on a very few occasions before.
“This move is yet another example of the US authorities being prepared to operate in the UK and internationally where others may not. We are seeing this from the US Department of Justice and the SEC increasingly often and it’s likely to happen more in the future,” says Chris Warren-Smith, Fulbright & Jaworski Law Firm.
The FSA declined to comment on the case.