New York (HedgeCo.Net) – Private equity firm TL Ventures has agreed to agreed to settle SEC charges by paying nearly $300,000 in a SEC case where the firm is charged with continuing to receive advisory fees from the city and state pension funds following campaign contributions.
“Public pension funds are increasingly investing in alternative investment vehicles such as hedge funds and private equity funds.” LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit, said. “When dealing with public pension fund clients, advisers to those kinds of investment vehicles should be mindful of the restrictions that can arise from political contributions.”
An SEC investigation found that TL Ventures violated pay-to-play rules by continuing to receive compensation from two public pension funds – Pennsylvania’s state retirement system and Philadelphia’s pension plan – within two years after an associate made a $2,500 campaign contribution to a Philadelphia mayoral candidate and a $2,000 campaign contribution to the governor of Pennsylvania.
The SEC’s orders instituting settled administrative proceedings also charged TL Ventures and an affiliated adviser Penn Mezzanine Partners Management L.P. with improperly acting as unregistered investment advisers.
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