Bloomberg News

U.S. Judge Orders Asset Freeze in SEC Case Against Mattera

December 06, 2011

(Updates with details of order in second paragraph.)

Dec. 1 (Bloomberg) -- A federal judge ordered a freeze on the assets of funds in the case of a South Florida man accused of running an $11 million scam.

U.S. District Judge P. Kevin Castel ordered the preliminary injunction against Praetorian Global Fund Ltd. and its agents, according to a filing in federal court in Manhattan today.

John Mattera, the operator of the funds, was charged by federal prosecutors and sued by the Securities and Exchange Commission for allegedly luring investors into paying for non- existent shares in closely held companies including Facebook Inc. and Groupon Inc.

The U.S. said that Mattera used most of the money to buy cars and other items for himself, according to court records.

The cases are SEC v. Mattera, 11-cv-8323, and U.S. v. Mattera, 11-cr-2947, U.S. District Court, Southern District of New York (Manhattan).

--Editor: Peter Blumberg

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha in San Francisco at +1-415-6‘ mhytha @bloomberg.net


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