SEC Actions Confirm Uptick in Private Equity Enforcement Activity


Don’t tell me I didn’t tell you so! Just one week after I cautioned that the SEC is stepping up scrutiny of private equity funds, the agency announced two recent PE enforcement actions. In both cases, the PE firms involved paid hefty penalties.

In the first case, the firm was charged with improperly soliciting investments. The SEC specifically alleged that New York-based private equity firm Ranieri Partners violated securities rules requiring that an individual who solicits investments in return for transaction-based compensation be registered as a broker.

The employee in question was reportedly hired as a “finder” who would merely make initial introductions to potential investors. De facto he acted beyond this capacity by communicating with prospective investors and their advisors and providing them with key investment documentation that he received from Ranieri Partners.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eckerle Law | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.