Fund Manager Pleads Guilty to Obstruction of Justice for Lying During ALJ Hearing
A private fund manager has pled guilty to obstruction of justice for misstatements made during an SEC administrative hearing. The SEC charges that the respondent misled investors about the use of funds and profitability of fund investments. During the ALJ hearing, the SEC alleges that the respondent lied under oath that he did not control a related company. The SEC asserts that the respondent set the company up in his son’s name because of the SEC investigation.
OUR TAKE: SEC investigations and hearings should not be taken lightly. Misstatements can lead to prison time.