SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 21402 / February 2, 2010 SEC v. Grant Ivan Grieve, Finvest Asset Management, LLC; and Finvest Fund Management, LLC; Civil Action No. 09-Civ-1198 (S.D.N.Y.) (AKH) Court Enters Default Judgment Against Hedge Fund Manager Grant Ivan Grieve The Commission announced that on January 27, 2010, the Honorable Alvin K. Hellerstein, United States District Judge for the Southern District of New York, entered a default judgment against hedge fund manager Grant Ivan (“Gad”) Grieve. In an action filed on February 10, 2009, the Commission charged Grieve and his solely-owned investment advisory firms, Finvest Asset Management, LLC and Finvest Fund Management, LLC (collectively, “Finvest”), with fraud in connection with two hedge funds that they managed and advised, Finvest Primer, L.P. (“Primer Fund”) and Finvest Yankee, L.P (“Yankee Fund”). According to related court filings by the Commission, Grieve and Finvest attracted more than $50 million in investments between the two funds. The Court’s judgment enjoins Grieve from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b 5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The Court also ordered Grieve to pay disgorgement of ill-gotten gains, prejudgment interest thereon, and civil monetary penalties in amounts to be determined in later proceedings. The Commission’s complaint alleged that defendants Grieve and Finvest fabricated and disseminated false financial information for the Primer Fund that was “certified” by a sham back-office administrator and phony auditing firm that Grieve himself created. The complaint also alleged that Grieve and Finvest provided current and prospective investors in Primer Fund and Yankee Fund with false monthly account statements, newsletters, and fact sheets that materially overstated the funds’ performance and assets. According to the Commission, beginning in late 2008, Grieve engaged in similar misconduct overseas, including luring new investors and/or placating existing investors with counterfeit documents. For further information, see Litigation Release No. 20893 (February 10, 2009).