The Securities and Exchange Commission has obtained an asset freeze against a Sarasota, Fla.-based investment adviser, Kinetic Investment Group, and its managing member, Michael Scott Williams, in connection with an alleged fraud.
Mr. Williams and his firm sold unregistered securities, raising approximately $39 million from at least 30 investors located mostly in Florida and Puerto Rico for their purported hedge fund, Kinetics Funds, according to the complaint filed in the U.S. District Court for the Middle District of Florida.
The SEC alleges Mr. Williams and the firm made material misrepresentations to investors, saying that Kinetic Funds’ largest sub-fund invested solely in U.S.-listed financial products and that at least 90% of its portfolio was hedged using listed options. Mr. Williams actually invested a significant part of the sub-fund’s assets in a private start-up company he owned, and misappropriated at least $6.3 million through undisclosed loans to himself and his entities, according to the complaint.
A federal granted the SEC’s request for emergency relief, including an asset freeze and an order for records preservation, against Kinetic Group, Mr. Williams and a number of companies charged by the SEC as relief defendants. The court also granted the SEC’s request to appoint a receiver for the firm.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.
With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.
Professional athletes are often targets of scam artists and are particularly vulnerable to fraud.
The brokerage giant tells Wall Street it will use artificial intelligence to reach clients it has never been able to serve — and turn the technology's perceived threat into a competitive edge.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
