• Skip to primary navigation
  • Skip to main content
Logo
Open search bar
  • About
    • Todd Cipperman
    • Why Choose Us
  • Services
    • Money Managers
    • Registered Funds
    • Private Equity
    • Broker-Dealers
    • CyberSecure - Funds
  • In The News
  • Outsourced CCO
  • Client Engagement
  • Resources
    • Helpful Information
    • Regulatory Exams
    • Executive Interviews
    • Blog
    • Podcasts & Videos
    • Best Practices
  • Contact Us

Our Take Blog

Home
Our Take Blog
SEC Pursues Product Manager and CIO for Bond Fund Misreps

SEC Pursues Product Manager and CIO for Bond Fund Misreps

The SEC has charged the chief investment officer and a product manager with securities fraud in connection with misleading statements alleged to have been made in connection with the sale of an enhanced cash fund invested in subprime mortgages. The SEC alleges that the product manager was responsible for the fact sheets and client presentations that misrepresented the fund’s holdings, diversification, and leverage. The SEC charges that the CIO sent misleading letters to investors while overseeing redemptions by certain other clients. The SEC charges the respondents with primary violations of Sections 10 and 17 of the Exchange Act.

OUR TAKE: It has now become routine for the SEC to charge individuals in addition to their employers. Notable here is charging corporate officers/employees with primary violations rather than aiding/abetting. In general, the SEC can seek more severe penalties if it can satisfy the higher proof standards for a primary violation.

http://www.sec.gov/litigation/admin/2010/33-9147.pdf

Back to Top
logo
480 E. Swedesford Road, Suite 220, Wayne, PA 19087
610-687-5320
LinkedIn Twitter
© 2020 Marlivia Properties LLC