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US SEC charges Detroit money market fund manager with fraud

Tuesday, 26 Nov 2013 | 10:57 AM ET

WASHINGTON, Nov 26 (Reuters) - U.S. regulators filed civil fraud charges on Tuesday against a Detroit-based money market fund manager and the advisory firm where he works, saying they misled the fund's board about credit risks and exposures to the 2011 Eurozone credit crisis.

The Securities and Exchange Commission's case, filed with the agency's administrative court, also alleges that Ambassador Capital Management and portfolio manager Derek Oglesby failed to comply with federal regulations that limit risk in a money market fund's portfolio.

The SEC said its investigation stemmed from an ongoing analysis of money market fund data, which revealed that Ambassador Money Market Fund's performance was "consistently different" from the rest of the market.