US – The Securities and Exchange Commission has acted against alleged fraud at a Pennsylvania-based hedge fund called Fountainhead.

The SEC said it has filed an emergency civil action in the US District Court for the Eastern District of Pennsylvania against Fountainhead Asset Management principals Anthony Postiglione and William Lennon.

The SEC has frozen the defendants’ assets and appointed a receiver.

“The Commission's complaint alleges that, from November 2001 through the present, Postiglione and Lennon have raised approximately five million dollars for the fund from at least 18 private investors,” the SEC said.

It added: “The complaint alleges that, from the inception of the fund through the present, Postiglione and Lennon have sent false quarterly statements and newsletters to investors, consistently overstating the Fund's value and performance.”

The SEC voted last month to formally propose that hedge funds be registered.