{"id":2149,"date":"2018-03-22T14:59:12","date_gmt":"2018-03-22T19:59:12","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=2149"},"modified":"2022-03-22T15:57:57","modified_gmt":"2022-03-22T20:57:57","slug":"judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/","title":{"rendered":"Judge Says Ex-F-Squared CEO Must Pay More Than $13M Related to AlphaSector Strategy and ETF Fraud"},"content":{"rendered":"<p>\t\t\t\tHoward Present, the ex-CEO and cofounder of F-Squared Investments, must pay more than $13M\u2014nearly $11M of disgorgement, almost $1.4M of interest and a nearly $1.6M penalty. The final judgement, issued by U.S. District Judge Leo Sorokin in Boston, comes after a federal jury found Present liable for the false and misleading statements made to investors.<\/p>\n<p>It was in 2014 that the US Securities and Exchange Commission charged Present and his investment management firm with misleading investors about its AlphaSector strategy. At the time, F-Squared was the biggest market of index products that use exchange-traded funds.<\/p>\n<p>The SEC accused F-Squared of false advertising related to its touting of a \u201csuccessful seven-year track records\u201d for its AlphaSector strategy that it claimed was based on real investments, real clients, and real performances, when, in fact, the algorithm that the company claimed to use didn\u2019t even exist during that time period of this supposed success. Instead, the data that the F-Squared marketed was a product of backtesting\u2014not real testing\u2014even though Present and his firm specifically stated that their AlphaSector strategy had not been backtested.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/#more-2149\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Howard Present, the ex-CEO and cofounder of F-Squared Investments, must pay more than $13M\u2014nearly $11M of disgorgement, almost $1.4M of interest and a nearly $1.6M penalty. The final judgement, issued by U.S. District Judge Leo Sorokin in Boston, comes after a federal jury found Present liable for the false and misleading statements made to investors. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4023,3760,3761],"tags":[2889,2890,2956,3012],"class_list":["post-2149","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-sec-enforcement","category-securities-and-exchange-commis","tag-alphasector","tag-f-squared","tag-fraud","tag-howard-present"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Judge Says Ex-F-Squared CEO Must Pay More Than $13M Related to AlphaSector Strategy and ETF Fraud | SSEK Law Firm<\/title>\n<meta name=\"description\" content=\"Howard Present, the ex-CEO and co-founder of F-Squared Investments, must pay more than $13M\u2014nearly $11M of disgorgement, almost $1.4M of interest and a nearly $1.6M penalty. 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Read more.","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Judge Says Ex-F-Squared CEO Must Pay More Than $13M Related to AlphaSector Strategy and ETF Fraud","datePublished":"2018-03-22T19:59:12+00:00","dateModified":"2022-03-22T20:57:57+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/"},"wordCount":485,"keywords":["AlphaSector","F-Squared","Fraud","Howard Present"],"articleSection":["Exchange Traded Funds","SEC Enforcement","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/","url":"https:\/\/www.investorlawyers.com\/blog\/judge-says-ex-f-squared-ceo-must-pay-13m-related-alphasector-strategy-related-misstatements\/","name":"Judge Says Ex-F-Squared CEO Must Pay More Than $13M Related to AlphaSector Strategy and ETF Fraud | SSEK Law Firm","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2018-03-22T19:59:12+00:00","dateModified":"2022-03-22T20:57:57+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Howard Present, the ex-CEO and co-founder of F-Squared Investments, must pay more than $13M\u2014nearly $11M of disgorgement, almost $1.4M of interest and a nearly $1.6M penalty. 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