The day after Christmas, a hedge fund manager who made the remarkable promise that he would never lose investors' money was accused of stealing from his clients by U.S. regulators.
But then the partial government shutdown hit and the Securities and Exchange Commission's case went into purgatory, with all court proceedings put on hold.
In the ensuing weeks, one of the few SEC cops still on the beat put what seemed to be a reasonable request to the fund manager, Statim Holding's Joseph Meyer. As long as the case was stayed, would Mr. Meyer agree not to pull assets from a Statim hedge fund. Mr. Meyer refused, the regulator said in a Jan. 17 court filing. Now, SEC attorneys are seeking an injunction to bar Mr. Meyer from withdrawing funds, the filing shows.
Mr. Meyer's lawyer, Steve Sadow, disputes that his client did anything wrong.
"Mr. Meyer and Statim Holdings Inc. will respond in detail to the SEC's allegations," Mr. Sadow said in an emailed statement. "But suffice it to say for now that we dispute the allegations, will vigorously contest them in court and look forward to vindication by a open-minded, fair and impartial jury."