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SEC: Man hid money to avoid paying $6M fine in fraud case

Posted 7:57 a.m. Wednesday

— Federal securities officials want a former Portland, Maine, developer to pay a nearly $6 million fine he accepted in a 2010 settlement.

The Portland Press Herald reports (http://bit.ly/2gI3Dso ) the Securities and Exchange Commission filed a motion in September in Philadelphia saying Michael Liberty, of Windermere, Florida, hid money and lied about being unable to pay the remaining $5.4 million.

The SEC alleged Liberty improperly diverted more than $9 million of a $100 million venture capital fund to himself or associates.

Liberty agreed to settle the allegations. A judge cut the fine to $600,000 after Liberty told the SEC his net worth was negative $29 million.

His lawyer counter-filed and says Liberty was telling the truth about his financial condition.

Liberty pleaded guilty Monday in Maine in an illegal campaign contributions case.

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