{"id":86021,"date":"2023-09-28T00:43:23","date_gmt":"2023-09-28T04:43:23","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=86021"},"modified":"2023-09-28T00:49:14","modified_gmt":"2023-09-28T04:49:14","slug":"bruderman-asset-management-and-its-principal-charged-for-failing-to-disclose-misuse-of-investment-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2023\/bruderman-asset-management-and-its-principal-charged-for-failing-to-disclose-misuse-of-investment-funds.html","title":{"rendered":"Bruderman Asset Management and its Principal Charged for Failing to Disclose Misuse of Investment Funds"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has announced that New York-based <strong>Bruderman Asset Management LLC (BAM) <\/strong>and its principal, <strong>Matthew J. Bruderman,<\/strong> agreed to settle charges related to their failure to disclose the misuse of proceeds raised from investment advisory clients and to the firm\u2019s failure to implement reasonably designed written policies and procedures concerning the disclosure of conflicts of interest.<\/p>\n\n\n\n<p>According to the SEC\u2019s order, from at least February 2017 through August 2021, BAM and Bruderman advised at least 13 clients to invest at least <strong>$6.1 million<\/strong> in three companies in which Bruderman had decision-making authority and significant ownership interests. The SEC\u2019s order finds that BAM and Bruderman failed to disclose to the clients that their investments would be temporarily used for other purposes, such as to fund BAM\u2019s payroll and to repay loans owed to Bruderman or to the other companies with which he was affiliated. According to the SEC\u2019s order, BAM, through Bruderman, also failed to implement reasonably designed written policies and procedures concerning the disclosure of conflicts of interest.<\/p>\n\n\n\n<p><em><strong>\u201cFull disclosure of conflicts of interest is a central safeguard for investors who place their trust in investment advisers,\u201d said Sheldon L. Pollock, Associate Director of the SEC\u2019s New York Regional Office.&nbsp;\u201cOur program remains focused on ensuring that investment advisers make full and complete disclosures in order to increase investor confidence.\u201d<\/strong><\/em><\/p>\n\n\n\n<p>Without admitting or denying the SEC\u2019s findings, BAM and Bruderman each consented to an order requiring them to cease and desist from committing or causing violations of various provisions of the Investment Advisers Act of 1940, imposing a censure, and ordering them to pay, jointly and severally, a civil penalty of <strong>$250,000.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has announced that New York-based Bruderman Asset Management LLC (BAM) and its principal, Matthew J. Bruderman, agreed to settle charges related to their failure to disclose the misuse of proceeds raised from investment advisory [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-86021","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86021","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=86021"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86021\/revisions"}],"predecessor-version":[{"id":86026,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86021\/revisions\/86026"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=86021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=86021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=86021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}