SEC charges private fund adviser for allegedly defrauding retail investors
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The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly
Sept 30 (Reuters) - The US securities regulator on Wednesday charged Meyer Global Management and its CEO Owen Meyer over the private fund adviser's schemes that allegedly took advantage of retail investors seeking exposure to SpaceX and other pre-IPO shares.
Here are some more details:
• In a complaint filed in the US District Court for the Southern District of New York, the SEC alleged that MGM violated its fiduciary duties by misusing client fund assets and misled underlying investors in the fund.
• The US Securities and Exchange Commission's complaint said client assets from certain MGM-managed funds were allegedly misappropriated to pay for Meyer's personal expenses.
• A lawyer for Meyer Global did not immediately respond to a Reuters request for comment.
• The SEC is seeking permanent injunctive relief and civil penalties against MGM and Meyer, as well as recovering illegal profits using a financial remedy called disgorgement.
• It also said MGM and Meyer allegedly repeatedly failed to address a capital call deficiency owed by an MGM-managed fund related to its SpaceX investment, which resulted in the fund forfeiting its nearly $3 million investment.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
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