A final consent judgment, which includes payment of $35 million in disgorgement and prejudgment interest, has been filed against International Investment Group, a former registered investment adviser, which the Securities and Exchange Commission had charged with securities fraud for hiding losses and selling millions in fake loan assets to clients.
The SEC’s complaint, filed on Nov. 21, 2019, alleged that New York-based IIG grossly overstated the value of defaulted loans in its flagship fund to conceal losses. The SEC said that IIG later doctored the firm’s records to show that the defaulted loans had been repaid and that the proceeds had been used to make new loans, when no repayment had been made and the purported new loans were fake.
The SEC also alleged that IIG executives sought to raise money to meet investor redemptions and other liabilities by selling at least $60 million in fake trade finance loans to other clients, including a collateralized loan obligation, a retail mutual fund and two hedge funds. To do this, IIG created fake loan documentation, the SEC said in a release.
The SEC revoked IIG’s registration as an investment adviser on Nov. 26, 2019.
Carson has fully acquired another firm in Florida, while Simon Quick Advisors finds its third perfect-fit partner in a Las Vegas-based boutique.
FINRA has been focused on firms and their use of social media for several years.
The model has surged in popularity thanks to its fiduciary appeal, but the show is far from over for no-fee and commission-based arrangements.
Asset managers filing to launch dual share-class mutual funds, creating an ETF sleeve for existing strategies, could end up eroding key benefits of the wrapper.
The two wealth tech firms are continuing to expand their reach among firms as they support advisor productivity and client data protection.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
From direct lending to asset-based finance to commercial real estate debt.
