If the SEC gets its way, the Amerindo fund will be put into receivership. The Commission asked a U.S. District Court judge in Manhattan to make the move Wednesday after it filed a complaint alleging that Amerindo principals Alberto Vilar and Gary Tanaka had defrauded at least one of their clients.

The SEC complaint is similar to the criminal complaint brought by federal prosecutors late last week. Both Vilar and Tanaka are under arrest and are being held in a New York jail.

The SEC's request comes as the two independent advisors to the Amerindo fund have begun a search for a new manager to oversee the fund. Whether they would consider hiring a subadvisor is not known. The board voted to remove Vilar and Tanaka from the fund last Friday after it learned of their arrests. At the same time, it also stopped issuing new shares of the fund.

The fund has $122 million in assets and positions in just 12 stocks.

Separately, Morningstar has recommended that its readers sell their holdings in the fund. "Charges of fraud against Amerindo Technology's managers are just the most obvious reason to avoid it," wrote analyst Dan Lefkovitz. "We're worried that impending redemptions will only exacerbate the fund's problems by forcing it to sell out of positions."

At issue for the SEC is whether Amerindo has anyone to oversee the fund's operations.

"Other than Vilar or Tanaka, there does not appear to be an individual at Amerindo with full decision-making authority, who has the resources to address client concerns and account for all funds and investments," the SEC said in the complaint. "A receiver should be appointed."

The SEC complaint also provided additional perspective on the allegations being made against Vilar and Tanaka. It states that at least one of the victims, who is identified as "L.C." in the complaint, was a close personal female friend of Vilar's.

L.C. requested that Amerindo close her $9 million separate account in February. However, Amerindo refused to make the transfer, allegedly because a $5 million investment Amerindo had made did not exist, the SEC said.  

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