(HedgeCo.Net) The Securities and Exchange Commission today announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed.<\/p>\n
The SEC\u2019s order finds that Scott M. Landress formed the funds to invest in real estate trusts with underlying investments in properties throughout the UK. His investment advisory firm SLRA Inc. earned management fees based on the net asset value of the underlying investments. SLRA\u2019s fees shrank and its management costs increased as real estate property values fell during the financial crisis, and the funds\u2019 limited partners declined several requests by Landress for additional compensation to cover the shortfalls.<\/p>\n
According to the SEC\u2019s order, Landress directed SLRA to withdraw 16.25 million pounds from the funds in early 2014, purportedly as payment for several years of services provided by an affiliate. He subsequently transferred the money to his personal account. SLRA and Landress did not disclose the related-party transaction and the resulting conflicts of interest until after the money had been withdrawn.<\/p>\n
According to the SEC\u2019s order, Landress and SLRA returned the withdrawn service fees to the funds after the SEC began its investigation.<\/p>\n
\u201cPrivate equity fund advisers have a duty to act in the best interest of their clients, but Landress and SLRA helped themselves to millions of dollars\u2019 worth of fees to which they had no legitimate claim,\u201d said Scott W. Friestad, Associate Director of the SEC\u2019s Division of Enforcement. <\/p>\n
Landress and SLRA agreed to the SEC\u2019s cease-and-desist order without admitting or denying the findings.<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission today announced that a private equity adviser has been permanently barred from the securities industry and must pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-56497","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56497","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=56497"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56497\/revisions"}],"predecessor-version":[{"id":56498,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56497\/revisions\/56498"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=56497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=56497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=56497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}