Private Fund Salesperson Pays $22 Million for Failing to Register

An unlicensed salesperson agreed to pay over $22 Million in disgorgement, penalties, and interest to settle charges that he sold interests in a private fund without registering as a broker-dealer or becoming associated with a broker-dealer. The SEC asserts that the defendant “met with prospective investors in person, spoke with them on the telephone, or communicated via the internet” and that he “described the investment program to investors and recommended they purchase” interests. The SEC claims that the defendant raised over $97 Million and was paid over $18 Million in commissions. The SEC said that it is “committed to holding such unregistered salespeople accountable for their conduct.”

 

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541837538#.U3XqkvldVqV