North Hills Hedge-Fund Adviser ‘Looted’ Client Money, SEC Says

Date: Thursday, February 26, 2009
Author: David Scheer, Bloomberg.com

Mark Bloom, owner of the New York- based firm North Hills Management LLC, was accused by U.S. regulators of “systemically looting” a fund with clients including a charitable trust supporting children’s schools.

Bloom, 57, misappropriated more than $13 million after helping to raise about $30 million from investors from 2001 to 2007 for the fund of hedge funds North Hills LP, the U.S. Securities and Exchange Commission said in a lawsuit at federal court in Manhattan today. The suit, which names Bloom and the firm as defendants, seeks to confiscate “ill-gotten gains” and impose unspecified fines.

To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net.