SEC Alleges Use of Artificial Performance Data by Investment Adviser

December 23, 2011

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 performance results to attract and keep investors. The SEC alleges that Wanger and Wanger Management engaged in wrongful principal securities transactions with the Fund to repay unauthorized transfers from the Fund’s account to Wanger Management’s account, and that Wanger and Wanger Management failed to timely file required forms reporting purchases of securities under the Exchange Act.

Click here to access the administrative action.



Enforcement Actions, Investment Advisers, Investment Companies