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Matthias Knab, Opalesque for New Managers:

In a significant development for regulatory enforcement in the hedge fund world, the Securities and Exchange Commission (SEC) has denied a motion by hedge fund manager Father Emmanuel Lemelson (born Gregory Lemelson) to quash a subpoena seeking documents from a FINRA arbitration involving his fund, Amvona Fund, and brokerage Clear Street LLC. The SEC's Administrative Law Judge (ALJ) Jason Patil issued the ruling on May 28, 2025, in a case that underscores how post-violation conduct can influence sanctions in regulatory proceedings. Background

Father Lemelson, an Orthodox priest and the founder of Lemelson Capital Management, has faced prior enforcement actions by the SEC, including a previous case involving allegations of false and misleading statements about publicly traded companies. This current administrative proceeding - File No. 3-20828 - is a follow-on to earlier actions. The latest dispute centers on whether post-violation conduct involving a FINRA arbitration should be admissible in assessing sanctions and other public interest factors. Specifically, the Division of Enforcement alleges that Lemelson sent "threatening and harassing emails" to Clear Street employees - behavior documented in the FINRA arbitration. The Motion to Quash

Lemelson argued that the subpoena should be quashed......................

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