{"id":42565,"date":"2014-06-13T10:27:52","date_gmt":"2014-06-13T14:27:52","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=42565"},"modified":"2014-06-13T10:27:52","modified_gmt":"2014-06-13T14:27:52","slug":"chicago-area-attorney-charged-after-sec-exam-spots-fraud-in-real-estate-investment-offering","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2014\/chicago-area-attorney-charged-after-sec-exam-spots-fraud-in-real-estate-investment-offering.html","title":{"rendered":"Chicago-Area Attorney Charged after SEC Exam Spots Fraud in Real Estate Investment Offering"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/06\/cloud-217062_640.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-42566 size-medium\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/06\/cloud-217062_640-300x198.jpg\" alt=\"Chicago\" width=\"300\" height=\"198\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/06\/cloud-217062_640-300x198.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/06\/cloud-217062_640.jpg 640w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>New York (HedgeCo.Net) \u2013 The Securities and Exchange Commission today charged the founder of an investment advisory firm located in suburban Chicago with defrauding investors in connection with a real estate venture for which his firm offered securities.<\/p>\n<p>After an SEC examination of Kenilworth Asset Management LLC detected potential misconduct that was referred to the agency\u2019s Enforcement Division, the ensuing investigation found that Robert C. Acri misled clients in the offer and sale of promissory notes issued for the redevelopment of a retail shopping center near Hammond, Ind.\u00a0 Despite saying the investments would specifically be used for this project and secured by a security interest in real estate, Acri misappropriated $41,250 of the proceeds for other uses and took no action to ensure that a security interest was recorded. \u00a0Acri failed to disclose several other material facts to investors, including a primary purpose behind the investment offer \u2013 Kenilworth was attempting to rescue money that other Acri clients had previously invested in the developer of the same real estate project. \u00a0Acri also concealed from investors that Kenilworth was to receive a five percent commission on each sale of notes.<\/p>\n<p>Acri, a licensed attorney who lives in Winnetka, Ill., agreed to settle the SEC\u2019s charges by disgorging the misappropriated investor funds and undisclosed commissions plus interest and an additional penalty for a total of approximately $115,000 in monetary sanctions. Acri also agreed to cease and desist from violations of the antifraud provisions of the federal securities laws and to be barred from the securities industry, from participating in penny stock offerings, and from appearing before the SEC as an attorney on behalf of any entity regulated by the agency. \u00a0Acri resigned from Kenilworth in August 2012.<\/p>\n<p>\u201cAcri wasn\u2019t honest with his clients and hid serious conflicts of interest from them while blatantly disregarding his fiduciary duty as an investment adviser,\u201d said Robert J. Burson, senior associate regional director of the SEC\u2019s Chicago office.<\/p>\n<p><a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a><span style=\"color: #000000;\">\u00a0is a premier\u00a0<\/span><a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a><span style=\"color: #000000;\">\u00a0and community for qualified and accredited investors only. Membership in\u00a0<\/span><a style=\"color: #204067;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><span style=\"color: #000000;\">\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<\/span><a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a><span style=\"color: #000000;\">!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) \u2013 The Securities and Exchange Commission today charged the founder of an investment advisory firm located in suburban Chicago with defrauding investors in connection with a real estate venture for which his firm offered securities. After an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-42565","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42565","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=42565"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42565\/revisions"}],"predecessor-version":[{"id":42567,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42565\/revisions\/42567"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=42565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=42565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=42565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}