Doug Cornelius on compliance for private equity real estate
Lots of private equity funds use a line of credit to fund acquisitions. It’s quicker to draw on the line than to call equity from investors. That line of credit is secured by the capital commitments to the private equity fund. Later the private equity fund calls the capital for the acquisition and pays down … Read more »
George Heckler, of Charleston, South Carolina, operated a decade-long fraud through three private hedge funds, Cassatt Short Term Trading Fund LP (Cassatt), CV Special Opportunity Fund LP (CV Special), and Conestoga Holdings LP (Conestoga). This fraud caught my attention because my brother and mom both live in South Carolina. Heckler’s initial fund was Conestoga, which … Read more »
The Securities and Exchange Commission announced the creation of a Climate and ESG Task Force in the Division of Enforcement. The Division of Corporate Finance announced an enhanced focus on climate-related disclosures in public filings. The Division of Examinations announced a focus on climate-related risks as part its 2021 examination priorities. Sounds like all of … Read more »
After sitting in limbo for three months, the Securities and Exchange Commission finally published the Investment Adviser Marketing Rule in the Federal Register on March 5, 2021. That makes the effective date May 4, 2021 and the compliance date 18 months after that (October November 4, 2022). So far I’ve not heard any information on … Read more »
The Securities and Exchange Commission’s Division of Examination has been visiting firms that have been involved in digital assets. The Division published a Risk Alert that you should read if your firm has digital assets in client accounts. Right off the bat, the risk alert hedges on its definition of “digital assets” to say that … Read more »
The Securities and Exchange Commission’s Division of Examinations has published its 2021 examination priorities. The big headline is a greater focus on climate-related risks as part of information security and operational resiliency. “Building on the efforts noted above concerning our business continuity plan outreach related to the pandemic, the Division will shift its focus to … Read more »
As an early Christmas present, the Securities and Exchange Commission approved a new marketing rule on December 22, 2020. This was after a vote on the rule was suddenly canceled at an open meeting the week prior. Now we are two months after approval of the rule, but it hasn’t yet been published in the … Read more »
Joseph Cimino wanted to make a great tequila and needed capital to make it happen. He raised almost $1 million and got 6 Degree tequila into production. Unfortunately, he apparently lied to his investors in raising the capital and then stole almost half of that capital. Cimino created a 40-page booklet providing sales and expense … Read more »
COVID vaccinations are continuing to roll out and we can hope to see an end to the pandemic. Regulators are continuing to roll out cases against people and companies that tried to illegally profit from the pandemic. The latest case is against Arrayit Corporation, a life sciences company in Sunnyvale, California. Although a public company, … Read more »
The annual number of enforcement actions by the Securities and Exchange Commission decreased each year during the Trump administration. Starting at the high of 1,063 in 2016 and dropping to 827 in 2019, according to a tabulation in the Wall Street Journal. Now there is a new President and new Acting Chair of the Securities … Read more »