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Matthias Knab, Opalesque: An administrative proceeding has been conducted by the Securities and Exchange Commission (SEC) against Hudson Valley Wealth Management, Inc. (Hudson) and Christopher Conover. The proceeding was instituted pursuant to Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940.
Summary of the Proceedings:
Hudson and Conover, registered investment advisers, were found to have breached their fiduciary duty to their clients, including separately managed accounts (SMAs) and a private investment fund called Hudson Private, LP.
The breaches of fiduciary duty involved the failure to disclose a conflict of interest related to payments made by a third-party film production finance company to Conover.
Hudson and Conover also misled their clients and investors regarding the nature of these payments and the associated conflicts of interest.
Additionally, Hudson and Conover breached their fiduciary duties by preferencing one investor's redemption request over others in the Fund.
Between September 2017 and October 2021, Hudson and Conover advised the Fund and the SMAs on investments in films produced by a specific production company.
During this period, Conover received approximately $530,000 in executive producer compensation from the production company for the same films in which the Fund and the SMAs invested.
Hudson and Conover initially failed to disclose these payments and later misrepresented them as compensat...................... To view our full article Click here
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