SEC v. Topwater Exclusive Fund III

In this second appeal in an SEC enforcement action against Marlon Quan and entities he controlled, including the hedge fund SCAF, three investors in SCAF challenged orders entered by the district court pertaining to the receivership, the entry of judgment against SCAF, and the pro rata distribution of SCAF's assets to investors. The Eighth Circuit affirmed the district court's judgment and held that the investors have identified no error in the district court's approval of the First Stipulation, which was within the district court's broad discretionary power; the district court did not abuse its discretion in the approval of the Second Stipulation; there was no basis to conclude that the district court abused its discretion in applying a pro rata distribution to all investors; and the investors have waived their arguments regarding legal fees and expenses. View "SEC v. Topwater Exclusive Fund III" on Justia Law