The man at the helm of Scotts Valley-based GLR Growth Fund has until March 29 to settle his case with the SEC.
John A. Geringer was accused of running a $60 million investment fund like a Ponzi scheme and defrauding his investors in May. The SEC sued Geringer for his actions in the spring.
According to the SEC, Geringer used "false and misleading marketing materials to lure investors into believing that the fund was earning double-digits annually.” In reality, Geringer’s trading generated “consistent losses.”
The Mercury News court filings show that Geringer has just four more months to settle the case, or it will head to trial in early 2014.
Geringer, 47, has until Wednesday to file initial disclosure statements.
“Geringer painted the picture of a successful fund weathering America’s financial crisis through a diversified, conservative investment strategy,” said Marc Fagel, Director of the SEC’s San Francisco Regional Office in May. “The reality, however, was the complete opposite. Geringer lost millions of dollars in the market, tied up remaining investor funds in a pair of illiquid private companies, and lied about it in phony account statements.”
The SEC is seeking financial penalties, disgorgement of ill-gotten gains, preliminary and permanent injunctions, and other relief.
