A Massachusetts priest who moonlights as a hedge fund manager was sued by federal regulators for allegedly making false statements about a biotech company to try to drive down its share price, Bloomberg News reported. In an attempt to profit from his short position, Emmanuel Lemelson published false “research reports” about Ligand Pharmaceuticals Inc. on popular investing websites, including Seeking Alpha, according to a complaint filed Wednesday by the U.S. Securities and Exchange Commission. The agency accused Lemelson, 42, and his firm, Lemelson Capital Management, of market manipulation. It’s seeking an unspecified fine and a return of illegal profits, according to the complaint. After betting in May 2014 that Ligand shares would decline, Lemelson began issuing reports that made negative claims about the company, including that it was teetering on the brink of bankruptcy, the SEC said. In all, he published five different reports. By October, shares dropped 34 percent and Lemelson covered his position, making about $1.3 million for a hedge fund he managed, the Amvona Fund, according to the regulator.
