September 27, 2012

Custody Issues Related to Swaps and Other Derivatives Addressed in No-Action Letters

The staff of the SEC’s Division of Investment Management issued a series of no-action letters addressing a mutual fund maintaining cash and/or certain securities in the custody of the Chicago Mercantile Exchange (CME), a derivatives clearing organization or a clearing member. The cash and other assets are held for purposes…

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September 14, 2012

SEC Brings Fraud Action Against Hedge Fund Adviser

The SEC brought an administrative action against Walter V. Gerasimowicz (Gerasimowicz), Meditron Asset Management, LLC (MAM) and Meditron Management Group, LLC (MMG) alleging that from 2009 through 2011, Gerasimowicz, MAM and MMG misappropriated approximately $2.65 million belonging to their hedge fund client, the Meditron Fundamental Value/Growth Fund, LLC (Meditron Fund).

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September 11, 2012

Bowden Named Deputy Director of OCIE

Andrew J. Bowden has been named Deputy Director of the SEC’s Office of Compliance Inspections and Examinations (OCIE).  He succeeds Norm Champ who was named in July to head the SEC’s Division of Investment Management.

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September 6, 2012

Adviser Charged with Holding Seminars Where False and Misleading Information Was Disseminated

The SEC charged Raymond J. Lucia Companies, Inc. (RJL) and Raymond J. Lucia, Sr. for presenting materially misleading information at a series of investment seminars RJL and Lucia hosted for potential clients.

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September 6, 2012

SEC Charges Adviser with Failing to Adequately Disclose Revenue Sharing Arrangement

The SEC brought an administrative proceeding against two Portland, Oregon-based investment advisory firms and their owner regarding the failure to disclose a revenue-sharing agreement and other potential conflicts of interest to clients.

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September 4, 2012

SEC Brings Enforcement Action Against Adviser In Connection with Client Investments in Wrap Program

The SEC Instituted an administrative proceedings against Jason A. D’Amato, the former President and Senior Investment Officer of Stanford Capital Management, LLC (SCM), an investment adviser registered with the SEC from September 2006 through September 2009, for misrepresenting to investors and prospective investors the performance of a proprietary mutual fund wrap product known as Stanford Allocation Strategies (SAS).

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