Overstating AUM a sure way to get regulators knocking on your door

t’s an understatement to say that overstating assets under management will get registered investment advisers into trouble with securities regulators. In three separate enforcement actions brought against a dissolved RIA’s president, chief compliance officer and vice president, the Securities and Exchange Commission charged that the parties overstated their firm’s AUM. The SEC alleged that the […]

SEC charges advisory firm with fraud for improperly retaining fees

On September 2, 2015, the SEC settled enforcement proceedings brought against Taberna Capital Management LLC (“Taberna”), an investment advisory firm, based on alleged violations that Taberna had retained certain fees (known as “exchange fees”) it charged in connection with restructuring transactions undertaken between Taberna’s collateralized debt obligation (“CDO”) clients and the issuers of the underlying […]