A Copley, Ohio, hedge fund manager is the subject of an SEC complaint that charges him with raising $1.5 million and using much of the money to fund a luxury home and car for himself.
A federal District Court judge in Akron, Ohio, on Tuesday ordered Anthony J. Davian to halt a fraud in which Davian used his company as “no more than his personal piggy bank,” the SEC says in its complaint.
The SEC is seeking a permanent injunction against Davian and his asset management firm, Davian Capital Advisors LLC in Richfield, Ohio, from continuing the fraud, and asking for disgorgement of funds and civil penalties.
Davian is managing member of Davian Capital. He offered unregistered securities in the form of limited partnership interests in his various hedge funds, the SEC says.
The SEC alleges that since 2011, Davian, 34, has raised more than $1.5 million from investors by promoting Davian Capital Advisors as a highly successful investment management firm that manages a portfolio of profitable hedge funds. The returns and profits described in his marketing literature were fictitious, the complaint says. He also routinely comingled money between Davian Capital and the various hedge funds.
The SEC further alleges that Davian and Davian Capital misappropriated at least $1 million in investor proceeds and used the money to pay for personal expenses such as the purchase of a luxury home and automobile for Davian. He pressured investors by telling them if they acted quickly he would give them a break on management fees.
