Monthly Archives: August 2016

Internal Control Gaps at Apollo Advisers

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Earlier this week, four private fund advisers affiliated with Apollo Global Management agreed to a $52.7 million settlement.  During an investigation by the SEC, the advisers were found to have misled fund investors about fees and a loan agreement, as well as failed to supervise a senior partner who charged personal expenses to the fund.

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Rule Making By Enforcement: Churning

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Brad Bennett, FINRA’s Executive Vice President and Chief of Enforcement, said, “A key element of retail investor protection is the aggressive pursuit of brokers who churn and excessively trade customer accounts.  FINRA has no tolerance for brokers who place commissions ahead of what is suitable and appropriate for their customers.” (FINRA News Release August 6, 2015.)

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The SEC Halts Securities Fraud Scheme

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Earlier this week, the SEC won a court-ordered asset freeze of two former brokers, James Brennan III and Douglas Dyer, and their company Broad Street Ventures. The former brokers, both of whom have disciplinary histories with FINRA and state regulators, allegedly raised more than $5 million from investors by selling purported shares in eight similarly named companies.

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Filed under Investment Advisers, SEC