A federal lawsuit was filed by the SEC against Twin Cities manager David Blaine Welliver, reports the Star Tribune.

According to the report, Welliver, who ran his own advisory business called Dblaine Capital, is accused of fraud and "flagrant and numerous" securities violations.

The lawyers representing the SEC also said they learned that the former Minneapolis police and fire pension fund advisor opened Stringfield Capital after they sued him, and he promised investors "a whopping 12 percent annual return." This, according to the suit, is something he could not pay.

Welliver lawyers told the Star Tribune there would be no comment.

Welliver has faced suits before. In 2000, he was hit with a $14.6 million judgement when he allegedly mismanaged funds, and he pleaded guilty to a 2003 suit that he failed to file IRS employee benefit plan forms. There was also a suit between Welliver and the DoL in 2004 when he allegedly moved funds from his company's retirement plan to a personal account, the Star Tribune reports.  

Edited by: HFD


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