The US market regulator has served a Chicago-based private equity firm and its president with a temporary restraining order after charging the firm with misappropriating $10.7m (€8.5m) of funds on ventures including a horse farm and a strip club.

The Securities and Exchange Commission said in a complaint that John Orecchio, president of buyout house AA Capital Partners, allegedly spent client funds on such ventures as his Michigan horse farm and a company that manages a Detroit strip club.