SEC Says CFO Made $500,000 In Secret Hedge Fund Trades

November 11, 2009 3:48 p.m. EST

Washington, D.C. (AHN) - The former financial officer of a New York hedge fund has been charged by the Securities and Exchange Commission with security fraud that netted him more than a half million dollars.

Ezra C. Levy, who was chief financial officers at investment advisory firm Boston Provident LP at the time of the alleged crime, arranged for secret sales of securities from his personal trading account to the hedge fund's accounts at inflated prices, the SEC alleged in a statement.

The trades, which took place on two days in June, caused the hedge fund to lose money while Levy made $537,000, according to the SEC.

The agency is seeking to freeze Levy's assets.