Accused Hedge Fund Fraudster Hit With Asset Freeze

A federal judge has shut down a San Francisco hedge fund and frozen its assets.

U.S. District Judge Ann Montgomery in Minneapolis issued a temporary restraining order against Crossroad Capital Management, principal John Lawton and its hedge fund, Paramount Partners.

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Earlier this week, the SEC sued Lawton, accusing him of lying to investors about the performance of his hedge fund, overstating its balance sheet to hide losses, defrauding investors of almost $16 million. Lawton has denied the charges.