On March 22, 2013, the Securities and Exchange Commission (“SEC”) announced charges against Houstonbased hedge fund manager, George R. Jarkesy Jr., and his firm, John Thomas Capital Management (“JTCM”). Jarkesy has been accused of defrauding investors in two hedge funds by inflating the value of the funds’ assets and charging…

On March 11, 2013, the Securities and Exchange Commission (“SEC”) announced that Oppenheimer Asset Management, Inc. and Oppenheimer Alternative Investment Management, LLC (“Oppenheimer”) have agreed to pay approximately $3.0 million to settle allegations that Oppenheimer misled investors about the valuation policies and performance of a private equity fund-of-funds. The SEC…

It is becoming increasingly clear that the United States Securities and Exchange Commission (“SEC”) is accelerating its investigative efforts in the hedge fund and private equity space. During early 2010, the SEC created five new special investigative units, including the Asset Management Unit (“AMU”). The AMU was established to seek…

The Securities and Exchange Commission, on December 10, 2012, brought an enforcement action against eight former fund directors for failing to oversee asset valuation at five mutual funds that resulted in material misstatements of net asset values in certain reports and the inaccurate pricing of shares. The action is noteworthy…