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Stories of Interest
- FINRA Board of Governors - Election Notice
- Trump Signs Biggest Rollback of Bank Rules Since Financial Crisis
- SEC Commissioners Hold Investor Town Hall in Atlanta
- SEC Proposes FAIR Act Rules to Promote Research Reports on MFs, ETFs, Other Funds
- FINRA Markup/Markdown Analysis Report - Phone Workshop, WebEx Presentation
- NASAA Announces Coordinated International ICO and Crypto Crackdown
- New York Investment Advisor Settles SEC Insider Trading Charges
- Supreme Court Backs Companies Over Worker Class-Action Claims
- Bank of America Introduces Erica, Its AI Financial Assistant
- Banks Are Getting Another Volcker Rule Win
- Citigroup to Pay $7.3Mn Fine for Substandard IPO Work
- FINRA Stretches Definition of Participating in a Private Securities Transaction - Bill Singer
- Post Mortem Auto-Pilot Trading Sends Stockbroker's Career into Head-On Regulatory Crash
- Wells Fargo Has Shown Us Its Contemptible Values
- UBS to Counter Trading Troubles With M&A Work
- SEC Moves Quickly To Shut Down Fake Pre-IPO Share Scam
- SEC Testimony: Oversight of the SEC Division of Enforcement
- FINRA Modifies 'Agency Debt Security' in Rule 6710
- Is Jamie Dimon Doing a U-Turn on Bitcoin?
- After New Yorker's Racist Rant Goes Viral, His Law Firm Gets Pummeled with 1-Star Yelp Reviews
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NEWSLETTERS & ALERTS
Hedge Fund Firm and CFO Charged by SEC
Visium Asset Management, a hedge fund advisor, agreed pay over $10 million to settle SEC charges related to asset mismarking and insider trading by its privately managed hedge funds and portfolio managers. Separately, Visium CFO Steven Ku agreed to pay a $100,000 fine and serve a 12-month suspension to settle SEC charges that he failed to respond appropriately to red flags that should have alerted him to the asset mismarking.
SEC FINDINGS re: VISIUM. Two portfolio managers of the New York-based advisor falsely inflated the value of securities held by hedge funds it advised, causing the funds to falsely inflate returns, overstate their aggregate net asset value, and pay approximately $3.15 million in excess fees to Visium. The mismarking scheme ran from at least July 2011 to December 2012. In addition, certain Visium portfolio managers traded on confidential insider information received from former government officials who are working as paid consultants to Visium.
SEC FINDINGS re: KU. Visium CFO Steven Ku failed reasonably to supervise 2 portfolio managers, Christopher Plaford and Stefan Lumiere, who perpetrated the asset mismarking scheme. Ku failed to respond appropriately to red flags that should have alerted him to their misconduct. These red flags included (i) the frequency with which these portfolio managers used price overrides; and, (ii) the fact that the overrides almost always resulted in higher valuations for the Credit Fund.