Federal regulators are preparing a civil fraud case against a prominent Los Angeles money manager, a government lawyer said at a court hearing on Wednesday, the New York Times DealBook blog reported on Thursday. The manager, Peter J. Eichler Jr., chief executive of Aletheia Research and Management, has received a so-called Wells notice from the Securities and Exchange Commission, an indication that the agency is considering an enforcement action. Gary Leung, an SEC staff lawyer, disclosed the potential lawsuit during a hearing in bankruptcy court. Aletheia filed for bankruptcy protection on Nov. 11, and owes as much as $50 million.
