NEW YORK, Sept 30 (Reuters) – The previous chief danger officer of defunct funding adviser Infinity Q Capital Administration LLC conform to settle fees of misconduct associated to a fraudulent scheme to inflate the worth of belongings the agency suggested by greater than $1 billion, securities regulators stated on Friday.
Scott Lindell did not train cheap care and to undertake an applicable investigation regarding a number of pink flags that indicated the worth of Infinity Q funds’ positions have been inappropriate, the U.S. Securities and Alternate Fee stated in fees filed in Manhattan federal court docket.
Lindell agreed to settle the costs, with willpower of disgorgement, prejudgment curiosity, and civil cash penalties to be determined by the court docket at a later date, the regulator stated.
Lindell couldn’t instantly be reached for remark.
Infinity Q was compelled final yr to liquidate its mutual funds after the SEC discovered that the agency’s founder and former chief funding officer, James Velissaris, manipulated a third-party pricing mannequin used to worth fund investments. learn extra
The SEC stated Lindell negligently misrepresented to buyers, representatives of the mutual fund’s board, and others that the pricing service was impartial from Infinity Q when, in actual fact, Velissaris exercised management over it.
Lindell additionally helped Velissaris submit deceptive paperwork to the SEC in response to the regulator’s preliminary inquiries over the valuations and, on one event, helped mislead the mutual fund’s auditor “with a minimum of reckless disregard of the reality,” the SEC stated.
Lindell, who was additionally Infinity Q’s head of operations, chief compliance officer and a former portfolio supervisor and member of the agency’s valuation committee, additionally willfully made misstatements on some Infinity Q SEC filings, the regulator stated.
Velissaris was charged in February over the matter by the SEC, the Commodities Futures Merchants Fee and the Southern District of New York (SDNY).
Reporting by John McCrank
Enhancing by Marguerita Choy
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