SEC socks Elgin's Paridon Capital Management

The Securities and Exchange Commission filed a federal suit Monday against Elgin-based Paridon Capital Management alleging fraud.

According to the suit, filed in U.S. District Court in Chicago, Paridon owner Jeffrey Neufeld, 35, also of Elgin and also named as a defendant, "reported false and fictitious rates of return and assets" in managing the affiliated Tritone Capital Management Global Strategy Fund, which the SEC labeled "an unregistered investment commodity pool." The suit also charged that Neufeld used TCM funds to purchase $75,000 in debt securities from Paridon, in violation of federal securities laws.

The suit said that, under investigation, Neufeld claimed to have closed TCM, only to be discovered running a new Paridon Currency Fund. He then claimed to have closed that too, only to admit he still owed an investor in the fund $82,000, according to the lawsuit. "Because of this and possibly other debts," the suit stated, "Neufeld and Paridon may try to fraudulently raise additional money by soliciting new investors."

The suit charges Neufeld and Paridon with violations of securities law and seeks the return of investments as well as financial penalties.

The suit said Paridon was based at 847 S. Randall Rd., Unit 169, Elgin, but the firm had no published phone number, and Neufeld could not be reached for comment.