Category Archives: HedgeCo News

SEC Charges Egan-Jones Ratings Co. and CEO with Conflict of Interest Violations

(HedgeCo.Net) The Securities and Exchange Commission today charged Haverford, PA-based Egan-Jones Ratings Company, a nationally recognized statistical rating organization (NRSRO) registered with the Commission in certain ratings classes, with violating conflict of interest provisions. The SEC also charged the company’s […]

SEC Charges Rochester, NY, and City’s Former Executives and Municipal Advisor with Misleading Investors

HedgeCo.Net) City sold $119 million of bonds to investors without disclosing financial distress. The Securities and Exchange Commission has charged the City of Rochester, New York, its former finance director Rosiland Brooks-Harris, and former Rochester City School District CFO Everton […]

Brokerage firm Allegedly sold $13.3 million worth of high-risk bonds to retirees

(HedgeCo.Net) The Securities and Exchange Commission has charged registered broker-dealer Western International Securities, Inc. and five of its registered representatives, or brokers – Nancy Cole, Patrick Egan, Andy Gitipityapon, Steven Graham, and Thomas Swan – with violating Best Interest Obligation […]

Weiss Asset Management Charged with Short Selling Violations

(HedgeCo.Net) The Securities and Exchange Commission has announced that investment advisory firm Weiss Asset Management LP has agreed to pay approximately $6.9 million to settle charges that it violated the federal securities laws when it unlawfully purchased stock in seven […]

Schwab Subsidiaries Misled Robo-Adviser Clients about Absence of Hidden Fees

(HedgeCo.Net) The Securities and Exchange Commission today charged three Charles Schwab investment adviser subsidiaries for not disclosing that they were allocating client funds in a manner that their own internal analyses showed would be less profitable for their clients under […]

New York-Based Investment Adviser and Its CEO and Former Chief Compliance Officer Charged with Securities Violations

(HedgeCo.Net) The Securities and Exchange Commission has announced charges against registered investment adviser A.G. Morgan Financial Advisors, LLC (“AGM”) of Massapequa, New York, AGM’s owner Vincent J. Camarda, and AGM’s former Chief Compliance Officer James McArthur, for unlawfully offering and […]

Investment Adviser Charged with Orchestrating Multi-Million Dollar Ponzi Scheme

(HedgeCo.Net) The U.S. District Court for the District of Rhode Island has entered its final judgment and a permanent injunction against Patrick Churchville, the owner and president of Rhode Island-based investment advisory firm ClearPath Wealth Management, LLC, for defrauding the […]

SEC Sues New York Based Firm and Its Managing Member for Acting as Unregistered Securities Dealers

(HedgeCo.Net) The Securities and Exchange Commission has announced charges against LG Capital Funding, LLC (“LG Capital”) and its managing member Joseph Lerman of Brooklyn, New York, for failing to register as securities dealers with the SEC. LG Capital and Lerman […]

SEC Charges Former Executive of Network Infrastructure Company with Accounting Fraud

(HedgeCo.Net) The Securities and Exchange Commission has charged Anthony Sirotka, the former Chief Administrative Officer and President of FTE Networks, Inc., a network infrastructure company formerly based in Naples, Florida, for his role in a multi-year accounting fraud. The alleged […]

SEC Charges Former Cco of Investment Adviser Who Misappropriated Funds

(HedgeCo.Net) The Securities and Exchange Commission has announced charges against Jennifer Campbell, the former Chief Compliance Officer of a previously registered investment adviser, in connection with Campbell’s misappropriation of client funds between February 2019 and May 2021. The SEC’s complaint, […]

North Carolina Investment Adviser and Public Company CEO Charged with Fraudulent Self-Dealing

(HedgeCo.Net) The Securities and Exchange Commission has charged North Carolina resident Martin A. Sumichrast with defrauding Stone Street Partners, LLC, a private fund that he managed, and its investors by misappropriating fund assets and by engaging in several unauthorized transactions […]

Investment Adviser and Its Principals Charged with Fraud

(HedgeCo.Net) The Securities and Exchange Commission has filed charges against Rancho Santa Fe, California investment adviser Cornerstone Acquisition & Management Company LLC (“Cornerstone”), its chief executive officer, portfolio manager, and chief compliance officer, Derren Lee Geiger, and its chief financial […]