5 big compliance lessons from recent SEC cases
5. Do the due diligence you said you did
Barry Bekkedam, the former owner of investment advisory firm Ballamor Capital Management and a former Villanova University basketball player, touted to clients and prospects the high level of due diligence he performed on a private investment fund that turned out to be a Ponzi scheme, the SEC alleged in an April 30 complaint.
Take to heart what the SEC spelled out in a January exam program risk alert — it expects advisers to perform strict due diligence of alternative investments.