The allegations highlight how US, UK and other regulators around the world are continuing to track down alleged malpractices that have come to light in part due to the financial turmoil of the past three years.

Eugenio Verzili and Arturo Rodriguez were accused with misusing client money at their firm Juno Mother Earth Asset Management to pay for apartment rent, travel, meals, entertainment and department store purchases.

The pair inflated assets under management, once claiming that Juno oversaw $200 million though the total never exceeded $17 million, according to a civil lawsuit filed in a federal court in Manhattan.

It was also alleged by the SEC that the men issued promissory notes to conceal their misappropriation, and filed false reports, and that Verzili falsely told investors that Juno partners invested up to $3 million in a client fund.

Verzili is Juno's chief executive, and Rodriguez its chief investment officer, reports said.