قالب وردپرس درنا توس
Home / Insurance / Asset managers, former CEOs, agree to pay $ 10 million in SEC fees

Asset managers, former CEOs, agree to pay $ 10 million in SEC fees



An asset manager and its former co-CEOs have agreed to pay $ 10 million to settle allegations by the US Securities and Exchange Commission that they made false representations to investors and clients that created the illusion of the company’s likely future growth.

SEC order said that in several public notifications since at least
In August 2016, New York-based Medley Management and Brook B. Taube and Seth B. Taube overestimated the company’s assets by including amounts of “commitment capital” from clients whose agreement with Medley did not imply any obligation to invest with the company and whose investment activity through Medley was minimal.

Taubes and Medley did not disclose that there was a risk that a significant portion of the client̵

7;s capital would never be invested and therefore would never generate the fee income that Medley’s economic growth was due to, the SEC said in its statement.

The couple Taubes and Medley agreed to the introduction of the SEC’s order, which showed that they had violated the anti-fraud provisions of the Federal Securities Act, among other things.

They agreed to pay the $ 10 million without admitting that they denied the SEC’s results.

The company could not be reached for comment.


Source link