October 31, 2011

Hedge Fund Adviser Charged with Operating an Illicit Bank Conversion Scheme

The SEC filed a civil injunctive action against Drake Asset Management, LLC, of Glen Head, New York, and Oliver R. Grace, Jr., of Hobe Sound, Florida, for conducting a scheme to evade the group purchase limits of the public offerings of seven banks that were converting from mutual to stock ownership.

Continue reading...

October 31, 2011

Quant Hedge Fund Adviser Alleged to Have Committed Fraud

The SEC charged Andrey C. Hicks of Boston, Massachusetts, and Locust Offshore Management, LLC, his investment advisory firm, with committing fraud in connection with misleading prospective investors about their supposed quantitative hedge fund.

Continue reading...

October 27, 2011

SEC Orders FINRA to Improve Internal Compliance Policies and Procedures

The SEC ordered the Financial Industry Regulatory Authority (FINRA) to hire an independent consultant and undertake other remedial measures to improve its policies, procedures, and training for producing documents during SEC inspections.  According to the SEC’s order instituting settled administrative proceedings, certain documents requested by the SEC’s Chicago Regional Office during an inspection were altered just hours before FINRA’s Kansas City District Office provided them.

Continue reading...

October 26, 2011

SEC Approves Confidential Private Fund Risk Reporting

The SEC adopted a new rule requiring certain advisers to hedge funds and other private funds to report information for use by the Financial Stability Oversight Council (FSOC) in monitoring risks to the U.S. financial system.  The rule, which implements Sections 404 and 406 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, requires SEC-registered investment advisers with at least $150 million in private fund assets under management to periodically file a new reporting form (Form PF). Information reported on Form PF will remain confidential.

Continue reading...

October 26, 2011

SEC Charges Traders in Fraudulent “Free-Riding” Scheme

The SEC charged a pair of purported money managers with orchestrating an illegal “free-riding” scheme of selling stocks before they paid for them and netting $600,000 in illicit profits.

Continue reading...

October 25, 2011

SEC Approves Filing Fees for Exempt Reporting Advisers and Private Fund Advisers

The SEC issued an order approving filing fees for exempt reporting advisers filing Form ADV with the SEC and, consistent with one of its recent rule proposals, private fund advisers filing Form PF. The fee for exempt reporting advisers would apply starting with the date the order approving the fee…

Continue reading...

October 21, 2011

Bowden Named Head of SEC’s National Investment Adviser/Investment Company Examination Program

The SEC announced the appointment of Andrew J. Bowden as Associate Director of the National Investment Adviser/Investment Company Examination Program in its Office of Compliance Inspections and Examinations (OCIE), starting November 1.  As Associate Director, Bowden will oversee a staff of about 450 lawyers, accountants and examiners in their inspections of U.S.-registered investment advisers and companies.

Continue reading...

October 21, 2011

SEC Charges Denver-Area Hedge Fund Manager With Insider Trading

The SEC brought additional charges in its insider trading case against Denver-based traders who allegedly traded on confidential information in the securities of Mariner Energy Inc. ahead of the oil and gas company’s $3.9 billion takeover by Apache Corporation in April 2010.

Continue reading...

October 18, 2011

SEC Charges California-Based Investment Adviser With Fraud and Breach of Fiduciary Duty

The SEC charged Copeland Wealth Management, an SEC-registered adviser, a sister real estate company and Charles P. Copeland with fraud and breach of fiduciary duty.  Copeland Wealth Management has approximately $125 million in assets under management.

Continue reading...

October 18, 2011

SEC Charges Mutual Fund Adviser With Fraud

The SEC charged David B. Welliver, who resides in Buffalo, Minnesota, and his investment advisory firm, Dblaine Capital, LLC, with fraud and numerous other violations of the federal securities laws in connection with their management of a mutual fund, the Dblaine Fund.

Continue reading...

Menu