The Securities and Exchange Commission charged a hedge fund manager, his investment advisory firm, and an employee with stealing from investors in two hedge funds. The theft was carried out by charging more than $1 million for fraudulent research expenses and fees. According to the SEC complaint, Steven R. Markusen, the owner of Archer Advisors … Read more »
Happy Thanksgiving
Washington, D.C. October 3, 1863 By the President of the United States of America. A Proclamation. The year that is drawing towards its close, has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they … Read more »
SEC Issues Second Exemptive Relief from Pay-to-Play
It’s been about a year since the Securities and Exchange Commission granted its first exemptive order Rule 206(4)-5 when an adviser accidentally violated the pay-to-play rule. The SEC has now issued its second relief order. Ares Real Estate Management Holdings filed for exemptive relief after a senior partner wrote a $1,100 check to Colorado Governor … Read more »
Weekend Reading: War of the Whales
Dozens of beaked whales beach themselves in the Bahamas. This leads to a legal battle against the U.S. Navy. Joshua Horwitz details the story, scientists, the legal battle, and the science in War of the Whales. It’s an uphill battle when the other side is the most powerful fighting machine on the seas. It’s an … Read more »
Compliance Bricks and Mortar for November 21
Commissioner: ‘Millionaires can fend for themselves’ by Mark Schoeff Jr. in Investment News “This obsession with ‘protecting’ millionaires — potentially at the cost of hindering the wildly successful and critically important private markets — strains logic and reason,” said SEC member Daniel Gallagher Jr. “Millionaires can fend for themselves.” S.E.C.’s Delay on Crowdfunding May Just … Read more »
Anti-Money Laundering Regulations are Coming for Private Funds
Investment advisers and private funds have largely not been under the strict regulatory requirements under Bank Secrecy Act. The rationale is that the custody requirements impose a custody account and the custodian is subject to those rules. It looks like things are going to change. U.S. Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen … Read more »
Pay to Pour
Massachusetts regulators have launched an investigation into whether providers are paying for access. In this case, it’s about beer, not political donations. Pay-to-play is illegal under Massachusetts and federal liquor control laws. The restrictions date back to the end of Prohibition, to keep large breweries from dominating the market. Small breweries have to compete for … Read more »
Cheating Your Way Into the Olympics
Vanessa Mae really wanted to compete in the Olympics, but she is better violinist than a skier. She has sold 10 million records so that is a very high bar. The International Ski Federation decided that she cheated her way into the Olympics. When Eddie the Eagle competed in the 1988 Olympics, some thought it … Read more »
Weekend Reading: Trapped Under the Sea
If you’ve ever flown into Boston’s Logan Airport or stared out over the harbor, you likely noticed the dozen egg-shaped structures sitting out on Deer Island. Those are key components of the second largest sewage treatment facility in the United States. The construction of the outflow pipes from that facility is the key point in … Read more »
Compliance Bricks and Mortar for November 14
These are some of the recent compliance-related stories that caught my attention. The SEC and the DMV by Thomas O. Gorman in SEC Actions “The SEC Should Copy the DMV” is the title of an article published in the New York Times by Joseph S. Fichera recently. The article focuses on the use of corporate … Read more »