|Former hedge fund manager of Paramount Partners LP John W. Lawton pled guilty to mail fraud and falsifying documents in 2009. According to the Twin Cities Business Magazine, Lawton claims that he panicked during the SEC’s brisk investigation and was led to believe that the charges against him only included “negligently creating documents that contained inaccurate data.” Now, after fully understand the charges against and after having had an accountant review the fund documents in question, Lawton is now looking to withdraw his plea.|
Lawton faced charges of attracting 60 investors by embellishing information about his Wayzata, MN-based hedge fund. Between January 2005 and February 2009, Paramount took in upwards of $10 million before the SEC froze Lawton’s and his fund’s assets. According to the article, the quick freeze of assets as well as claims that Lawton’s personal defender did not do a thorough job investigating the case, sent Lawton into a state of panic and caused his subsequent guilty pleas.