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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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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.