It's Official: The SEC Is Checking ADV Claims And Punishing "Creative" Errors
- Category: Books & Records
- Created: Friday, 30 December 2011 09:15
Calhoun Asset Management got into the hedge fund business back in 2006, claiming that its advisory assets had surged from a healthy $27 million in 1999 to over $200 million.
Unfortunately, the SEC can't find any record of the Illinois firm ever running more than $3 million during that time period.
Likewise, by 2009 Calhoun claimed that its AUM was up around $80 million. It was maybe in the $7 million range.
As the SEC complaint points out, Calhoun principal Krista Ward "herself completed and electronically signed" the ADV forms throughout this period for an affiliated firm, Skore Financial Management -- and the figures look equally inflated.
The regulators have other problems with this firm, but one thing is clear: they're putting their money where their mouth is and are finally fact-checking disclosures.
For those of us who thought they were doing it all along, it's a little bittersweet. But late is better than never.
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