Galvin seeks to shut down Cambridge hedge fund
The office of Massachusetts Secretary of State William F. Galvin said this morning that it is seeking to shut down a small hedge fund that used an expert consultant to get inside information.
Galvin's administrative complaint seeks to revoke the registrations of James A. Silverman and Risk Reward Capital Management of Cambridge; Silverman is the manager of Risk Reward Capital Management.
According to Galvin's complaint, Silverman hired Guidepost Global LLC, a so-called "expert network" firm with an office in Boston. Silverman's hedge fund generated big returns as a result of receiving inside information that Silverman received through Guidepost consultations, Galvin alleges.
Silverman’s lawyer, Peter R. Pendergast, called Galvin’s allegations “unfounded and reckless.’’ He said firms such as Guidepoint Global are “universally used by responsible and law abiding analysts and fund managers as part of a legitimate due diligence process.’’