Private Equity Adviser Barred From Industry for Improper Withdrawal From Funds
The Securities and Exchange Commission today announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed. The SEC’s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA’s fees shrank and its management costs increased as real estate property values fell…
Read MoreSEC Charges Financial Adviser With Stealing From Client Accounts
The Securities and Exchange Commission today charged an investment adviser representative with stealing approximately $5 million from client accounts by initiating unauthorized wire transfers and issuing checks to third parties to cover personal expenses. The SEC alleges that Barry Connell, who worked in the New Jersey office of a major financial institution, conducted more than 100 unauthorized transactions by using falsified authorization forms misrepresenting that he received verbal requests from the clients. Connell allegedly used money from client accounts to rent a home in suburban Las Vegas and pay for a country club membership and private jet service. “As alleged…
Read MoreSEC Charges Investment Adviser With Stealing Investor Funds
The Securities and Exchange Commission today charged a Connecticut-based investment advisory business and its owner with stealing money from investors to settle a private lawsuit among other misuses. The SEC alleges that Sentinel Growth Fund Management and its founder Mark J. Varacchi misrepresented to investors that money they deposited with the firm would be allocated to up-and-coming hedge fund managers for investment purposes. According to the SEC’s complaint, Varacchi and Sentinel Growth Fund Management did not transfer all the money as promised, instead commingling investor assets and manipulating account activity, account balances, and investment returns as part of a scheme…
Read MoreWenchi Hu, Associate Director in the Division of Trading and Markets, to Leave SEC
The Securities and Exchange Commission today announced that Wenchi Hu, an Associate Director in the Division of Trading and Markets, will leave the agency in early February. Ms. Hu has headed the division's Office of Clearance and Settlement Supervision since August 2015, after serving three months as its Acting Associate Director. The office oversees registered clearing agencies including those that are designated systemically important in the equity, options, government and mortgage-backed securities, and security-based swaps markets. It routinely coordinates with the Federal Reserve Board, the Commodity Futures Trading Commission, and regulators outside the U.S. to enhance supervision of clearing agencies. "Wenchi has…
Read MoreOCIE Director Marc Wyatt to Leave SEC
The Securities and Exchange Commission today announced that Marc Wyatt, Director of the Office of Compliance Inspections and Examinations, will leave the agency next month to return to the private sector. Mr. Wyatt joined the SEC in December 2012 as a senior specialized examiner and co-founded the Private Fund Unit within OCIE. He was named Deputy Director in October 2014 and served as Acting Director in April 2015 before being named Director in November 2015. “OCIE has benefited greatly from Marc’s leadership and vision,” said SEC Acting Chairman Michael Piwowar. “His efforts on enhancing our risk based exam program and…
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