|
|
Komfie Manalo, Opalesque Asia: The Securities and Exchange Commission has filed fraud charges against Thomas D. Conrad, Jr. and his son, Stuart P. Conrad of Alpharetta, Georgia, for allegedly defrauding investors in a $10.7m hedge fund primarily managed by Thomas. The SEC also charged their two unregistered advisory firms, Financial Management Corporation and Financial Management Corporation, S.R.L. (FMC Uruguay).
In its complaint, the SEC said that between 2010 and late 2014, Thomas directed preferential redemptions and other disbursements out of the hedge fund and its feeder funds to himself, Stuart, their extended family, and certain favored investors, while representing to other investors that redemptions were suspended.
The complaint also alleges that Thomas arranged to increase his compensation from the hedge fund by appointing himself to be a sub-manager, for a fee, and that this additional fee and the related conflict of interest was not disclosed to investors. The SEC further alleges that in offering literature given to prospective investors, the father and son team touted Thomas' significant experience in the securities industry, but failed to disclose his disciplinary history, which included an industry bar that the SEC imposed on him in 1971. Finally, the complaint alleges that, without disclosure to investors, Thomas titled certain fund assets in his name, rather...................... To view our full article Click here
|
|
RSS
