SEC Settles in Goldsky Asset Management Case

On February 1, 2019, the SEC settled an enforcement action against Kenneth Grace, the CEO of Goldsky Asset Management, LLC, a defunct investment adviser. The SEC’s complaint alleged that, while acting as an investment adviser, Grace employed acts, practices, and courses of business which were fraudulent, deceptive, or manipulative, and made untrue statement of material facts and omitted to state material facts necessary to make the statements made, in the light of the circumstances under which they were made, not misleading, to any investor or prospective investor in a pooled investment vehicle, including false statements about Goldsky’s relationship with purported service providers it had engaged to perform services, and about the size of Goldsky’s then-current assets under management. The complaint also alleged that Grace made some of the foregoing false statements in filings with the Commission. The SEC barred Grace for two years.