New York (HedgeCo.Net) – One of Man Group’s hedge funds, GLG Partners L.P., and its former holding company GLG Partners Inc. agreed to pay nearly $9 million to settle SEC charges over internal failures that led to the overvaluation of fund assets and inflated fee revenue.
“From November 2008 to November 2010, GLG’s internal control failures caused the overvaluation of GLG Emerging Markets Special Assets 1 Fund’s 25 percent private equity stake in an emerging market coal mining company. The overvaluation resulted in inflated fees to the GLG firms and the overstatement of assets under management in the holding company’s filings with the SEC,” the regulator said.
“Investors depend upon fund advisers to have proper controls in place to ensure that valuations and fees are not inflated,” said Antonia Chion, an associate director in the SEC’s Division of Enforcement. “GLG’s pricing committee did not have the information and time it needed to properly value assets.”
GLG Partners was acquired by Man Group in 2010. An analyst at GLG was arrested in London on suspicion of insider trading earlier this year.
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