In addition to telling investors interests in the fund were government secured, Sierra, according to the SEC charges, said interests in the fund would produce annual returns of 15% to 50%. "Respondents had no legitimate basis for the claimed returns on the tax lien certificates," the SEC concludes.

McCamey tells GlobeSt.com he started the hedge fund based on a brochure he received describing tax lien certificates as having a 15% to 50% return "because they are secured by the real estate. We put this option on our website just to look for indications of interest," he says.

"We sent out emails asking people to go to our web site," McCamey continues. "Someone called and accused us of sending an unsolicited email. We told our lawyer about the complaint, and he I shouldn't send emails without (recipients') permission. So we stopped."

McCamey acknowledges representatives from the SEC "knocked on our door," asking about the matter. McCamey said he referred the SEC representatives to his lawyer who "offered to settle the matter for a $5,000 fine."

"This was 100% innocent," McCamey repeatedly tells GlobeSt.com. "We raised nofunds and invested no money."

When GlobeSt.com pointed out that, according to the public SEC filing, McCamey raised $10,000 from one investor in November 2001. The following month, "respondents terminated the hedge fund offering and returned the $10,000 invested," according to the SEC. McCamey acknowledged the truth of that charge, and reiterated, "The money was returned; it was never invested, and it (the offering and transaction) was 100% innocent.