Colorado Securities Commissioner Fred Joseph said today that he has filed a fraud lawsuit in Denver District Court against a Colorado Springs man who ran two hedge funds worth $3 million.
The complaint alleges Brian Peterson abandoned the operations, leaving 30 to 40 investors in the dark. The hedge funds were marketed as fund-of-funds, which invest in other funds run by other financial managers.
“Our investigation of this matter is ongoing,” Joseph said in a statement.
Peterson couldn’t be reached for comment. A man who answered the phone at his most recent residence in Colorado Springs said today that Peterson no longer lived there.
Joseph said Peterson had operated the hedge funds since February 2004.
A district court judge has appointed a receiver, Andrew Snyder, to oversee the hedge funds, Integrity Fund and Integrity Fund II.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
