January 2020 SEC Updates

  1. Portfolio manager and advisory firm misrepresented risk in mutual fund.  [https://www.sec.gov/news/press-release/2020-21]
  2. Office of Compliance Inspections and Examinations published its observations on cybersecurity and resiliency practices. [Note: https://www.sec.gov/news/press-release/2020-20]
  3. Husband and wife billion-dollar Ponzi scheme. [https://www.sec.gov/news/press-release/2020-18]
  4. CEO of Exempt Reporting Adviser charged with wire fraud, illegal monetary transactions, and making false statements to the SEC. [Note: https://www.sec.gov/litigation/admin/2020/ia-5439.pdf and https://www.justice.gov/usao-ct/us-v-barton-stuck and https://portal.ct.gov/DOB/Enforcement/Securities-Orders-2/Signal-Lake-Management-et-al—Findings-and-Order]
  5. Registered investment adviser misrepresenting to investors in its mutual concerning risk management procedures.  CEO charged with “causing” violation and failure to supervise.  [Note: https://www.sec.gov/litigation/admin/2020/ia-5436.pdf]
  6. Failing to disclose a conflict of interest.  [https://www.sec.gov/litigation/admin/2020/ia-5366a.pdf]
  7. Misappropriate of client assets.   [Note: https://www.sec.gov/litigation/admin/2020/34-87967.pdf]
  8. Registered representative knowing selling a private placement in a company whose financial statements were falsely stated in the offering documents. [https://www.sec.gov/litigation/admin/2020/34-87939.pdf]
  9. Investment advisory representative/registered representative aided and abetted in an unregistered offering. [Note: https://www.sec.gov/litigation/admin/2020/34-87904.pdf]
  10. SEC registered investment adviser and its owner charged with various civil and criminal violations https://www.sec.gov/litigation/admin/2020/ia-5424.pdf and https://www.sec.gov/litigation/litreleases/2017/lr24019.htm and https://www.justice.gov/usao-ednc/pr/raleigh-investment-advisor-convicted-twenty-counts-investment-fraud]