District Court, S.D. New York September 25, 2006, 04 Civ. 9263(RJH) (Drenis v. Haligiannis)

MEMORANDUM OPINION AND ORDER

HOLWELL, District Judge.

This action, and a related action brought by the Securities Exchange Commission, relate to the operation a hedge fund through which defendant Angelo Haligian-nis allegedly perpetrated a “Ponzi scheme,” a species of fraud whereby an investment fund that is unprofitable uses money from new investors to pay “false profits” to old investors in