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.
A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.
Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.
Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.
From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.
Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
