The Securities and Exchange Commission has sued a Massachusetts hedge fund manager accused of running a Ponzi scheme that swindled about 160 investors out of at least $11.5m (€9m).

The SEC said Frank Russo, who runs FJR Corporation and two hedge funds, Russo Associates Limited Partnership and Eliot Partners, raised $15m from investors in 12 states with a promise of returns of at least 10% with "safe and conservative" securities like bonds.