SEC charges Connecticut RIA with stealing $3.95M from investors
The regulator alleges the founder of Sentinel Growth Fund Management stole from investors to settle private lawsuit.
The Securities and Exchange Commission has charged Connecticut-based Sentinel Growth Fund Management and its founder-owner, Mark J. Varacchi, with stealing $3.95 million from investors.
In its complaint, the SEC alleges that Mr. Varacchi and his firm misrepresented to investors that money they deposited with Sentinel would be allocated to up-and-coming hedge fund managers for investment purposes. Instead, Mr. Varacchi and Sentinel Growth Fund Management allegedly commingled investor assets and manipulated account activity, account balances, and investment returns “as part of a scheme to siphon away investor funds,” according to an SEC press release announcing the complaint.
The SEC alleges that Mr. Varacchi and his firm used more than $1 million of the stolen money to settle litigation brought by the adviser’s prior employer.
The complaint seeks disgorgement and penalties against Mr. Varacchi and Sentinel, and names two hedge funds as relief defendants for the purposes of recovering investor assets in their possession.
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