{"id":5980,"date":"2016-06-08T00:00:00","date_gmt":"2016-06-08T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/06\/tennessee_investment_advisory"},"modified":"2016-06-08T00:00:00","modified_gmt":"2016-06-08T05:00:00","slug":"tennessee-investment-advisory","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/tennessee-investment-advisory\/","title":{"rendered":"Tennessee Investment Advisory Firm Accused of Trying to Collect Extra Fees from Hedge Funds"},"content":{"rendered":"

The Securities and Exchange Commission is charging Hope Advisors Inc. and owner Karen Bruton with scheming to get two hedge funds that they managed to pay them extra fees. The private hedge funds are HDB Investments LLC and Hope Investment LLC.<\/p>\n

The purported misconduct was discovered by the regulator\u2019s Atlanta office, which was examining the Nashville, Tennesse-based firm and Bruton. The regulator claims that Hope Advisors and Bruton sought to get around the funds\u2019 fee structure, which lets the firm receive fees from the funds only if their profits for the month exceeds previous losses. The firm and Bruton are accused of orchestrating a number of trades that would let the funds make a bigger gain closer to the end of the month and guarantee a big loss early on at the start of the next month. <\/p>\n

The SEC said that if it weren\u2019t for the fraudulent trades, Hope Advisors would have earned almost no incentive fees for close to two years. Instead, claims the Commission, the firm managed to avoid realization of over $50M in losses while making millions of dollars in fees that they should have never been paid.<\/p>\n

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

The Securities and Exchange Commission is charging Hope Advisors Inc. and owner Karen Bruton with scheming to get two hedge funds that they managed to pay them extra fees. The private hedge funds are HDB Investments LLC and Hope Investment LLC. The purported misconduct was discovered by the regulator\u2019s Atlanta office, which was examining the […]<\/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":[3748,3781,3760,3761],"tags":[],"class_list":["post-5980","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-investment-advisers","category-sec-enforcement","category-securities-and-exchange-commis"],"yoast_head":"\nTennessee Investment Advisory Firm Accused of Trying to Collect Extra Fees from Hedge Funds — Investor Lawyers Blog — June 8, 2016<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission is charging Hope Advisors Inc. and owner Karen Bruton with scheming to get two hedge funds that they managed to pay — June 8, 2016\" \/>\n<meta name=\"robots\" content=\"index, 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