New York (HedgeCo.net) – Washington-based hedge fund manager Pegasus Investment Management LLC (PIM) has agreed to pay a total of $165,000 to settle a SEC charge of failing to disclose to fund investors its receipt of cash payments from a third party.
According to the SEC, PIM combined its securities trades with another firm’s in order for that firm to receive volume discounts. PIM was paid $90,000 over a 10-month period for its role and retained the money for itself rather than passing it along to fund investors.
The SEC also charged PIM’s Vice President, Peter Benjamin Bortel, for his role in the violations, and PIM’s President and Chief Compliance Officer, Douglas Wayne Saksa, for failing reasonably to supervise Bortel. Without admitting or denying the findings, PIM, Bortel, and Saksa agreed to settle the SEC’s charges by paying a combined $165,000.
“The law is well-established that a funds’ trade volume belongs to the fund’s clients, not the adviser.” Robert Leach, Assistant Director in the SEC’s Asset Management Unit in the San Francisco Regional Office, said, “In this case, PIM improperly used that asset for its own benefit and without any disclosure to its investors.”
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
