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21 May 2008

Hedge Fund Manager Charged With Fraud

William Galvin, Massachusetts' top securities regulator has charged the hedge fund manager of the River Stream Fund with improperly soliciting investors.

The investigation also turned up a brokerage statement that showed the fund had $1,625 in its account in April. Regan had said he ran $15 million. The regulator said investors who entrusted their savings to Regan feared the money is now lost.

Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked. Wiliam Galvin, whose job includes protecting investors in Massachusetts, has waged aggressive campaigns against anyone caught trying to cheat investors.