The Securities and Exchange Commission has temporarily closed down, IU Group, a Beverly Hills hedge fund and wealth management business which allegedly sought to defraud investors, reports The Los Angeles Times, citing a statement from the SEC.

The firm was closed down before anyone was able to invest. The associate regional director for the Los Angeles office of the SEC, John McCoy III, said it was unusual, although not unheard of, for the SEC to stop a business scam before any investors were lured in, said the report.

"Often, particularly with defrauded investors, we don't get a complaint or tip until someone actually puts in money, tries to get it out and then the person says, 'Oh well, I don't actually have any of it,' " McCoy said.

In this case, the SEC was said to have received an early tip from the public, with subsequent investigations uncovering no investors or money, said McCoy.

UI Group was operated by Elijah Bang and Daniel Lee, and allegedly targeted professors, retirees and Christians. It was said to have misrepresented the business, soliciting clients using a number of company names and claiming that the fund managed over $800 million, the report said.

Some websites were said to have stated that the company was founded by "devoted Christians who believe in God, Jesus Christ and the Holy Spirit," the SEC said, according to the report.

Both Bang and Lee are said to have told potential clients that they handled money for professional athletes, actors, executives and politicians and the latter allegedly sent email solicitations to professors.

The SEC obtained a temporary restraining order to halt business activities and filed a complaint in the US District Court in central California accusing Bang and Lee of fraud and seeking financial penalties, said the publication.

The district attorney's office or US attorney's office could also bring criminal charges against the two men, said McCoy.