The SEC brought an administrative action against OM Investment Management LLC, located in Tampa, Florida, and its principal, Gignesh Movalia, and its director of investments, Edwin V. Gaw, with fraudulently raising money and making material misrepresentations and omissions relating to an unregistered hedge fund. According to the SEC, the adviser and its principals made material misrepresentations and omissions concerning:
- the fund's holdings and investments,
- the identity and duties of the fund's auditor, sub-adviser, and administrator.
In addition, the adviser failed to register the offering and sale of securities. The SEC further found that Movalia and OM Investment Management made material omissions concerning the fund's entry into related party transactions, distributed fabricated account statements, misappropriated investor funds, made false statements in regulatory filings with the SEC, and failed to comply with federal securities laws and rules concerning the operation of an advisory business and an investment company.
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