The Securities and Exchange Commission has charged asset manager Renaissance Asset Fund, its owner and its head of investor relations with raising $16m (€12.7m) from more than 190 investors to fraudulently pay earlier investors high returns.

According to an SEC complaint, Ronald Nadel, the owner and president of Renaissance, and Joseph Malone, the firm's head of investor relations, used investor funds to pay lavish personal expenses that included country club memberships, car leases, and retail purchases.