Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Liljenquist finance chairman resigns amid SEC charges

First Published May 03 2012 02:30 pm • Last Updated Aug 28 2012 11:32 pm

The finance chairman for Dan Liljenquist’s U.S. Senate campaign resigned Thursday, a day after he was sued by federal regulators over impropriety at a hedge fund he manages.

The Securities and Exchange Commission filed a lawsuit this week, accusing Russell Cannon of artificially inflating the value of assets in his hedge fund, RKC Matador Funds. Cannon’s attorney says the charges are untrue.

Join the Discussion
Post a Comment

"Effective immediately, Rusty Cannon has resigned from and will have no further role in our campaign," said Liljenquist’s campaign chairwoman, Holly Richardson. "Our thoughts and prayers are with Rusty as he addresses these issues."

Liljenquist said the SEC action is completely unrelated to the campaign.

"This is a dispute with the SEC," Liljenquist said. "It had absolutely nothing to do with our campaign or campaign finances."

Cannon, 38, is accused by the Securities and Exchange Commission of making last-minute trades on the final day of the month to inflate the value of the holdings of his hedge fund and of dictating the price of the stock listed in Matador’s financial reports to clients.

The SEC said that Cannon put more than half of the money from Matador investors into Global Pari-Mutuel Investments, Inc., where Cannon’s father was a board member. He then used trades on the last day to try to inflate Global’s price. When that didn’t work, he allegedly gave a false share price in Matador’s monthly brokerage statements.

Cannon’s incentive pay was dependent on Matador’s performance.

The SEC asks that Cannon be ordered to halt the allegedly fraudulent activities, pay a fine and disgorge profits.

gehrke@sltrib.com


story continues below
story continues below

Twitter: @RobertGehrke



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Login to the Electronic Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.