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SEC accuses hedge fund that bet on terror lawsuit of fraud

US regulator's suit claims the firm misrepresented its assets to investors

SEC headquarters in Washington
SEC headquarters in Washington Photo: iStock

A hedge fund that made a bet on the outcome of terrorism litigation has been sued by the US Securities and Exchange Commission for allegedly defrauding investors.

RD Legal Capital marketed its funds as a steady way to profit from safe legal settlements, but instead "invested the funds' money however they saw fit", the SEC said on July 14.

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