{"id":5835,"date":"2015-07-01T00:00:00","date_gmt":"2015-07-01T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/07\/hedge_fund_advisory_firm_to_pa"},"modified":"2022-03-09T16:08:37","modified_gmt":"2022-03-09T22:08:37","slug":"hedge-fund-advisory-firm-to-pa","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-advisory-firm-to-pa\/","title":{"rendered":"Hedge Fund Advisory Firm to Pay the SEC $5M to Settle Fund Valuation Scam Allegations"},"content":{"rendered":"<p>The Securities and Exchange Commission is charging AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities in hedge fund portfolios that the firm managed. The feeder funds involved are the private funds AlphaBridge Fixed Income Partners, LP and the AlphaBridge Fixed Income Fund, Ltd. <\/p>\n<p>The securities in question are inverse, interest-only floaters and interest only floaters. Both are tranches of<a href=\"https:\/\/www.investorlawyers.com\/derivative-securities-derivatives-mortgage-backed-securities-mbs.html\"> collateralized mortgage obligations<\/a>. To settle the charges, the Connecticut-based investment advisory firm and its owners, Michael J. Carino and Thomas T. Kutzen, will pay $5M. <\/p>\n<p>According to the regulator, AlphaBridge told investors that broker-dealers provided it with independent price quotes for residential mortgaged-backed securities that were thinly traded and unlisted even though the firm derived these valuations internally. The hedge fund advisory firm purportedly told brokers to say that the valuations came from their brokerage firms. <\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-advisory-firm-to-pa\/#more-5835\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission is charging AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities in hedge fund portfolios that the firm managed. The feeder funds involved are the private funds AlphaBridge Fixed Income Partners, LP and the AlphaBridge Fixed Income Fund, Ltd. The securities in question are inverse, [&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":[3862,3748,3757,3760,3795,3761],"tags":[2842],"class_list":["post-5835","post","type-post","status-publish","format-standard","hentry","category-collateralized-mortgage-obligations","category-hedge-funds","category-mortgagebacked-securities","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","tag-residential-mortgage-backed-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hedge Fund Advisory Firm to Pay the SEC $5M to Settle Fund Valuation Scam Allegations &#8212; Investor Lawyers Blog &#8212; July 1, 2015<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission is charging AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities &#8212; July 1, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-advisory-firm-to-pa\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Hedge Fund Advisory Firm to Pay the SEC $5M to Settle Fund Valuation Scam Allegations &#8212; Investor Lawyers Blog &#8212; July 1, 2015\" \/>\n<meta name=\"twitter:description\" content=\"The Securities and Exchange Commission is charging AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities &#8212; July 1, 2015\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Hedge Fund Advisory Firm to Pay the SEC $5M to Settle Fund Valuation Scam Allegations &#8212; 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