SEC censures, bars and penalizes RIA for misappropriation of more than $121,000
The Securities and Exchange Commission alleges that Bruce Hauptman misappropriated the money from a fund he managed.
The Securities and Exchange Commission has censured and barred Bruce Hauptman, a registered investment adviser, for misappropriating more than $121,000 from a fund he managed, Grand Teton Capital Partners.
The SEC also ordered the Wilson, Wyo.-based adviser and his firm, Grand Teton Capital Management, to pay disgorgement of $121,026.49 and prejudgment interest of $20,417.35 to the commission, as well as a civil penalty of $160,000.
According to an SEC cease-and-desist order, Mr. Hauptman solicited at least $625,000 from investors in 2011 for the Grand Teton fund. In the spring of 2013, after a period of disappointing performance, he began liquidating fund assets, acting outside the scope of fund’s offering documents and without notifying investors.
After taking the approximately $121,000 for his own use, the SEC said that Mr. Hauptman transferred the remainder of the fund assets of approximately $313,500 to various private entities, including a non-profit run by a friend, and entities in Hong Kong and Singapore. By October 2013, he had withdrawn all fund assets and transferred the monies either to his wife or to third parties unaffiliated with the fund.
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