Hedge fund Pentagon Capital Management's fine is increased to $100m Pentagon Capital Management, which was run by Lewis Chester, a contemporary of David Cameron at Oxford University, was ordered in February by US District Judge Robert Sweet to pay $76.8m after the fund was found to have engaged in late trading in mutual funds between 1999 and 2003. That amount was increased by $21.7m in "pre-judgment interest," according to a court ruling by Judge Sweet last week. The Securities Exchange Commission issued charges against Pentagon in 2008 after the regulator embarked on a crackdown on the abuse of trading in mutual fund shares. Investors in the fund, which has been winding down its assets since 2008, have included media tycoon Richard Desmond, former Labour treasurer Lord Levy and property magnate Gerald Ronson. The judge found that Pentagon had engaged in so-called "late trading," a term used to describe the practice of placing orders for mutual fund shares after the close of trading. Late trading is illegal in the US because it allows the subject to profit from market events that occur after trading closes. At the time of February's order by Judge Sweet, lawyers for Pentagon said that they would be appealing. Lawyer Frank Razzano said at the time: "We are grateful for Judge Sweet's finding that no illegal market timing took place. We are disappointed by his late trading conclusion. We shall be appealing. Mr Chester handed the Tories £100,000 in 2006 and 2007.