Job Offers

Top 5 - yesterday

Top 5 - last week

Top 5 - last month

US: SEC charges investment adviser and principal for misrepresentations in private fund offerings

The Securities and Exchange Commission announced settled fraud charges against Utah-based registered investment adviser Foresight Wealth Management, LLC, and its principal, Adam E. Nugent, for violations related to a private fund they managed.

According to the SEC's order, between March 1, 2018, and December 31, 2018, Foresight and Nugent raised approximately $19.5 million from over eighty investors, many of whom were individual advisory clients of Foresight and Nugent, through offerings of limited partnership interests and promissory notes in the private fund. The order finds, however, that Foresight and Nugent defrauded the fund and its investors, including individual advisory clients, by misusing fund assets; failing to disclose conflicts of interest; misrepresenting to investors how the proceeds of their investment would be used; and breaching the fund's limited partnership agreement.

The SEC's order finds that Foresight and Nugent violated the antifraud provisions of Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, as well as Rule 206(4)-8 thereunder. Foresight and Nugent have agreed, without admitting or denying the SEC's findings, to a cease-and-desist order, joint and several disgorgements of $1,379,061, prejudgment interest of $280,003, and a civil penalty of $1,379,061; censure as to Foresight; and undertakings, an industry bar and investment company prohibition as to Nugent.

The SEC's investigation was conducted by Emily C. Scruggs and supervised by Kimberly L. Frederick and Jason J. Burt of the SEC's Denver Regional Office, with assistance from Heather Gallagher, Susan Day, and Heather Clark, also of the Denver Regional Office.


Publication date:

Receive the daily newsletter in your email for free | Click here

Other news in this sector:

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber