In the fall of 2008, as the financial crisis raged, Highmount and Hull Capital started talking about a deal that would see Highmount exchange its stake in AJW Qualified Partners II, an NIR fund, for a stake in PIPE Equity, court documents say.

FORBES: NIR Group Investors Sue Each Other

In its 36-page complaint, filed in federal court in Brooklyn, the SEC claims that Ribotsky lied to investors in his AJW family of hedge funds to hide the fact that its PIPE trading strategy was failing during the financial crisis, falsely telling investors that he could liquidate all his PIPE investments within 48 months.

FORBES: SEC Accuses Corey Ribotsky Of Defrauding Investors In $876 Million Hedge Fund