SEC freezes Cayman fund

The SEC has initiated emergency action against a Cayman fund and two individuals. It charges the fund and individuals with defrauding investors. The Income Collecting 1-3 Months T-Bills Mutual Fund is run by Ofer Abarbanel and Victor Chilelli. Their $106 million fund, domiciled in Cayman in 2017, is alleged by the SEC to be fraudulent.

According to the SEC Abarbanel said the fund would invest primarily in US Treasury securities, and enter into reverse repurchase agreements with US Treasury securities serving as collateral. But the fund invested only about 1% in US Treasuries and did not use any reverse repurchase agreements as described in the offering documents.

To read more on this story see the June issue of The NED.