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…

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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…

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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…

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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,…

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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…

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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…

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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…

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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…

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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.

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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…

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