Fla. judge: No bail for former hedge fund manager

A former hedge fund manager accused of swindling investors out of nearly $200 million was ordered held without bail Friday after being extradited from South Korea.

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Lee was indicted in December 2006 along with two partners, brothers Jung Bae Kim and Yung Bae Kim, in a 35-count indictment for conspiracy, mail fraud and money laundering.

Federal prosecutors said the men set up hedge funds under several names, including KL Group Fund and KL Financial Group Florida, between 1999 and 2003. They had offices in West Palm Beach and Irvine, Calif.

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The money that was invested typically did not result in profits, they said, and between 2003 and 2004, the hedge funds lost about $64 million. Authorities said the men also used some of the money from investors to pay "false profits" to other investors.