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.
Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.
FINRA barred the advisor, Sung Moo Cho, last month.
A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.
The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.
The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
