After charging Robert D. Press, former CEO of the advisory firm TCA Fund Management Group, and Donna M. Silverman, its former chief portfolio manager, for their roles in a scheme to artificially inflate the net asset values and performance results of several funds managed by TCA, the Securities and Exchange Commission settled with the two.
Without admitting or denying the SEC’s findings, Press agreed to be barred from the securities industry and to pay disgorgement of overcharged management and performance fees he received of $4,409,546 plus prejudgment interest of $755,178, and a penalty of $292,570.
Silverman agreed to limitations on acting in a director or officer capacity in the securities industry, but has the right to reapply after three years; she will pay a penalty of $50,000.
The SEC charged that, through Press’s actions, TCA fraudulently inflated the net asset values and performance of the company's funds by recording nonbinding transactions and fraudulent investment banking fees on the funds’ books and records, which showed the funds as always having positive monthly returns.
In fact, without those false transactions, the TCA funds would have had at least 34 months of negative returns since their inception, the SEC said.
“The White House has extremely strict ethical guidelines with respect to issues like this,” said Press Secretary Karoline Leavitt.
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