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ARTICLE · 21 SEPTEMBER 2015

SEC Sanctions Investment Adviser For Materially False Advertisements

Morrison Foerster
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The SEC recently instituted proceedings against a registered investment adviser and its founder, CEO and majority shareholder for allegedly making material misstatements and omissions...

United StatesFinance and Banking
Kelley Howes
Kelley Howes
Matthew Kutner
Matthew Kutner
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The SEC recently instituted proceedings against a registered investment adviser and its founder, CEO and majority shareholder for allegedly making material misstatements and omissions regarding the amount of assets purportedly "managed" by the adviser. The SEC also alleged that the firm and its CEO made material misstatements regarding clients' investment returns, claiming that such returns placed the adviser in the "top 1%" of firms worldwide, and failed to disclose that the returns related to a model portfolio did not reflect actual client experience.

The adviser and its CEO are also charged with failing to adopt and implement adequate written policies and procedures related to the calculation and advertisement of assets managed and investment returns.

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