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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November 28, 2011

SEC Penalizes Investment Advisers for Compliance Failures

The SEC charged three investment advisers for failing to put in place compliance procedures designed to prevent securities law violations.  The cases stem from the SEC Enforcement Division’s Asset Management Unit’s initiative to proactively prevent investor harm by working with agency examiners to ensure viable compliance programs are in place.

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November 21, 2011

SEC Charges Longtime Madoff Employee With Creating Fake Trades

The SEC charged longtime Bernie Madoff employee with fraud for his role in creating fake trades to facilitate the massive Ponzi scheme.

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November 18, 2011

SEC Charges Perpetrator of Washington-Area Ponzi Scheme

The SEC  charged a Bethesda, Md. man and several family members and friends with conducting a multi-million dollar Ponzi scheme targeting investors in the Washington D.C. metropolitan area.

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November 16, 2011

SEC Charges Morgan Stanley Investment Management With Violating Securities Laws

The SEC charged Morgan Stanley Investment Management (MSIM) with violating securities laws in a fee arrangement that repeatedly charged a fund and its investors for advisory services they weren’t actually receiving from a third party.

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