censured and barred from the industry the principal of a non-U.S.-based
investment manager for making false Form ADV statements. The SEC charges the firm with falsely claiming
(i) to have over $100 Million in assets under management, (ii) to have retained
a nationally recognized auditor and prime broker for its funds, and (iii) a
principal place of business in the United States, which was only a virtual office. The SEC alleges that the Form ADV statements
violated the antifraud rules of both the Securities Act and the Investment
Advisers Act. The SEC asserts
jurisdiction because the respondents used interstate electronic communications
to further the fraud. The SEC claims proper
venue because the defendants maintained a virtual office in New York.
Form ADV is a securities law filing that gives rise to antifraud liability for misstatements. The regulators will not overlook untruths as innocent marketing exaggerations. Hire a lawyer or compli-pro to help prepare an accurate Form.