May 29, 2012
Hedge Fund Charged with Making Misleading Statements in Its Offering Documents
The SEC brought an administrative action against Gregory D. Tindall, alleging that Tindall was a managing member of Florida-based Arcanum Equity Fund, LLC (Arcanum) and of Vestium Management Group, LLC, which managed a second Florida-based hedge fund, Vestium Equity Fund, LLC. The SEC further alleges that Tindall selected or approved…
May 29, 2012
Miami Hedge Fund Adviser Charged for Misleading Investors about “Skin in the Game” and Related-Party Deals
The SEC charged Quantek Asset Management LLC, a Miami-based hedge fund adviser, with deceiving investors about whether its executives had personally invested in a Latin America-focused hedge fund. The SEC found that Quantek made various misrepresentations about fund managers having “skin in the game” along with investors in the $1…
May 29, 2012
Hedge Fund Charged with Fraud
The SEC brought an administrative action against Elijah Bang after finding he attempted to improperly solicit investors on behalf of IU Wealth, Inc., a hedge fund of which he was the principal. The SEC alleged that Bang made material representations to prospective investors in IU Wealth, including falsely representing that…
May 25, 2012
SEC Uncovers Illicit Matching Funds Schemes
The SEC brought charges against a New York-based fund manager and his two firms for luring investors into a trading program that would purportedly maximize their profits but instead spent their money in unauthorized ways. The SEC alleges that since at least November 2011, Jason J. Konior and his firms,…
May 24, 2012
Northern California Fund Adviser Charged with Fraud
The SEC charged an investment adviser in Scotts Valley, California with running a $60 million investment fund like a Ponzi scheme and defrauding investors by touting imaginary trading profits instead of reporting the actual trading losses he incurred.The SEC alleges that John A. Geringer, who managed the GLR Growth…
May 22, 2012
SEC Brings Enforcement Action Against Fund Adviser Investing in Legal Settlements
The SEC alleges that George Levin and Frank Preve, of Fort Lauderdale, Florida, raised more than $157 million from 173 investors in less than two years by issuing promissory notes from Levin’s company and interests in a private investment fund they operated. They used investor funds to purchase discounted legal…
May 17, 2012
Former NAPFA Chairman Charged with Fraud
The SEC charged Mark Spangler, a Seattle-based investment adviser, and his firm with defrauding clients by secretly investing their money in two risky start-up companies that he co-founded. Mr. Spangler is a former chairman of the National Association of Personal Financial Advisors (NAPFA). He allegedly funneled approximately $47.7 million of…
May 15, 2012
Public Company Executive Violated Regulation FD through Interactions with an Investment Adviser
Edward J. Marino of Boston, Massachusetts, former chief executive officer of Connecticut-based Presstek, Inc., settled with SEC on charges that he aided and abetted Presstek’s violations of Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Regulation FD thereunder. Regulation FD generally prohibits public companies from selectively…
May 8, 2012
SEC Chairman Mary Schapiro to Speak at Fund Event
SEC Chairman Mary Schapiro will speak at the ICI’s General Membership meeting on May 11, 2012. The event is being held at the Marriott Wardman Park Hotel in Washington, D.C.Click here for additional information.
May 2, 2012
Seward & Kissel Issues Memorandum Regarding Reliance on the 4.13(a)(3) Exemption from Registration as a Commodity Pool Operator
Effective April 25, 2012, the CFTC adopted amendments to Part 4 of its regulations, rescinding the exemption from commodity pool operator ("CPO") registration in CFTC Regulation 4.13(a)(4). This memorandum describes the Rule 4.13(a)(3) exemption and common issues that arise for managers as they seek to determine whether they are able…