{"id":38102,"date":"2013-09-19T10:45:06","date_gmt":"2013-09-19T14:45:06","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38102"},"modified":"2013-09-19T10:46:33","modified_gmt":"2013-09-19T14:46:33","slug":"ny-hedge-fund-adviser-fined-for-breaching-fiduciary-duty-due-to-conflict-of-interest","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2013\/ny-hedge-fund-adviser-fined-for-breaching-fiduciary-duty-due-to-conflict-of-interest.html","title":{"rendered":"NY Hedge Fund Adviser Fined For Breaching Fiduciary Duty Due To Conflict Of Interest"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/06\/Hedge-Fund-New-York.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-23249\" alt=\"Hedge-Fund-New-York\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/06\/Hedge-Fund-New-York.jpg\" width=\"170\" height=\"220\" \/><\/a>New York (HedgeCo.Net) &#8211; One of the founders of New York hedge fund firm Vicis Capital is under fire by the SEC for engineering an undisclosed transaction in which he had a financial conflict of interest. Without admitting or denying the charges,\u00a0Stastney agreed to pay more than $2.9 million to settle the SEC\u2019s charges.<\/p>\n<p>The SEC alleges that Stastney traded as a principal when he authorized the client hedge fund to pay approximately $7.5m to purchase a basket of illiquid securities from a personal friend and outside business partner hired by the firm as a managing director.<\/p>\n<p>\u201cFund advisers cannot sit on both sides of a transaction as buyer and seller without the consent of the clients who rely on them for unbiased investment advice,\u201d said Julie M. Riewe, Co-Chief of the SEC Enforcement Division\u2019s Asset Management Unit.\u00a0 \u201cStastney failed to live up to his fiduciary duty when he unilaterally set the terms of the transaction and authorized it without disclosing that he would personally profit from it.\u201d<\/p>\n<p>On top of the $2.9 million fine, the SEC\u2019s order bars the Marlboro, NJ hedge fund adviser from association with any investment company, investment adviser, broker, dealer, municipal securities dealer, or transfer agent for at least 18 months.\u00a0 Stastney will be permitted to finish winding down the fund under the oversight of an independent monitor payable at his own expense.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; One of the founders of New York hedge fund firm Vicis Capital is under fire by the SEC for engineering an undisclosed transaction in which he had a financial conflict of interest. Without admitting or denying [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,12,16034,3],"tags":[],"class_list":["post-38102","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedge-fund-regulation","category-hedge-fund-rulings","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38102"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38102\/revisions"}],"predecessor-version":[{"id":38104,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38102\/revisions\/38104"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}