{"id":5870,"date":"2015-09-29T00:00:00","date_gmt":"2015-09-29T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/09\/sec_accuses_investment_adviser"},"modified":"2015-09-29T00:00:00","modified_gmt":"2015-09-29T05:00:00","slug":"sec-accuses-investment-adviser","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-accuses-investment-adviser\/","title":{"rendered":"SEC Accuses Investment Adviser of Fraud Involving Over $40M In Illiquid Securities"},"content":{"rendered":"

The Securities and Exchange Commission is pursuing securities fraud<\/a> charges against Family Endowment Partners LP and owner Lee Dana Weiss. The regulator claims that the registered investment adviser persuaded clients to invest over $40M in illiquid securities without disclosing that Weiss possessed an ownership stake in the entities that issued the securities. The regulator said that these entities made payments to Weiss.<\/p>\n

According to the SEC, between \u201910, and \u201812 FEP and Weiss caused two hedge funds and recommended that 11 clients invest over $40M in securities that were issued by a French company. The firm and Weiss did not purportedly disclose that there were conflicts of interest, including that he had a financial stake in the company or that he and entities under his control received over $600,000 payments from the company after the investments were made. <\/p>\n

In \u201811, Weiss allegedly recommended that one client invest $2.55 million in subsidiaries of the French company despite knowing that the funds would go toward paying other clients’ delinquent interest. Also that year, he and his firm suggested that clients put $5 million in a consumer loan portfolio. The transaction was set up so that part of the proceeds of over $300,000 would go to a third-party manager, which was actually an inactive real estate company controlled by Weiss\u2019s friend. The friend would then move the payments to Weiss and others. \n <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission is pursuing securities fraud charges against Family Endowment Partners LP and owner Lee Dana Weiss. The regulator claims that the registered investment adviser persuaded clients to invest over $40M in illiquid securities without disclosing that Weiss possessed an ownership stake in the entities that issued the securities. The regulator said […]<\/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":[3781],"tags":[],"class_list":["post-5870","post","type-post","status-publish","format-standard","hentry","category-investment-advisers"],"yoast_head":"\nSEC Accuses Investment Adviser of Fraud Involving Over $40M In Illiquid Securities — Investor Lawyers Blog — September 29, 2015<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission is pursuing securities fraud charges against Family Endowment Partners LP and owner Lee Dana Weiss. 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