April 23, 2012

SEC Charges Former CalPERS CEO and Friend With Falsifying Letters in $20 Million Placement Agent Fee Scheme

The SEC charged the former CEO of the California Public Employees' Retirement System (CalPERS) and his close personal friend with scheming to defraud an investment firm into paying $20 million in fees to the friend's placement agent firms.The SEC alleges that former CalPERS CEO Federico R. Buenrostro and his…

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January 20, 2012

Fund Adviser is Subject to Failure to Supervise Charge

The SEC brought an administrative action against AXA Advisors, LLC (AXA Advisors), finding that the fund advisory firm failed reasonably to supervise Leo T. Buggy  with a view to preventing and detecting his violations of the federal securities laws.

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January 18, 2012

SEC Obtains Emergency Relief Against Private Investment Funds after Fraud Charges

The SEC obtained an order freezing the assets of St. Louis-based private investment funds and management firms after charging them for engaging in a scheme to defraud investors.

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January 4, 2012

SEC Charges Illinois-Based Adviser in Social Media Scam

The SEC charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn, and issued two alerts highlighting the risks investors and advisory firms face when using social media.

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December 29, 2011

SEC Alleges Use of Misleading Marketing and Filing of False ADVs by Investment Adviser

The SEC brought an administrative action against Calhoun Asset Management and its principal, Krista Lynn Ward. The SEC alleges that in order to raise the assets for management by Calhoun Asset Management, an investment adviser to two funds of funds, Ward, on behalf of Calhoun, grossly exaggerated Calhoun’s assets under…

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December 23, 2011

SEC Alleges Use of Artificial Performance Data by Investment Adviser

The SEC brought an action against Eric David Wanger and Wanger Investment Management Inc. related to the use of performance data.  The SEC found that David Wanger and his firm repeatedly marked the closing price of certain stocks held by the Wanger Long Term Opportunity Fund II to artificially inflate…

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December 23, 2011

SEC Brings Failure to Supervise Case Involving Interpositioning

The brought charges against Investment Placement Group (IPG) and its CEO, Adolfo Gonzalez-Rubio,. The SEC found that IPG and Gonzalez-Rubio failed reasonably to supervise a former IPG trader engaged in a fraudulent interpositioning scheme involving parties in Mexico from January to November 2008. The SEC found that the scheme went…

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December 16, 2011

SEC Brings Action Against Adviser Newsletter Publisher

12.7. 2011  The SEC brought an administrative action against Kenneth E. Marsh, Baldwin Anderson, Robert Anthony Budion, Jeanne M. Lada, and James T. Levier alleging that from at least 2007 through April 2010, they marketed their company, Gryphon Holdings, Inc., as a publisher of financial and investment newsletters, and repeatedly made false statements on the Internet and over the telephone about virtually every aspect of the firm’s business.

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December 15, 2011

Adviser Falsely Claims Internet Adviser Basis on Form ADV for Registering with the SEC

The SEC brought an administrative action against RetireHub, Inc., a Boston, Massachusetts based investment adviser, and its chief executive officer, Sunil K. Bhatia, alleging that they filed with the SEC Forms ADV between 2003 and 2010 with materially inaccurate statements.  One inaccuracy was the bases for registration with the SEC.

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November 28, 2011

SEC Brings Charges Against Investment Advisers For Compliance Failures

The SEC charged three investment advisers for failing to have in place compliance procedures designed to prevent securities law violations.  The SEC stated that the Asset Management Unit of its Enforcement Division worked closely with examiners from OCIE, the SEC’s inspection arm, to review compliance programs at advisory firms in connection with these matters.

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