Mosaique Capital Management, a $374m (€395m) US fund of hedge funds manager associated with Bear Stearns, has said it is winding down after an investigation by the Securities and Exchange Commission.

The Los Angeles firm plans to return capital to investors after the SEC found a Bear Stearns broker was getting paid by both parties when introducing the firm to a hedge fund manager, according to the New York Post. Mosaique is 25% owned by Bear Stearns and run by former Bear Stearns veteran Andrew Haas.