Action against Defendants, owners of a defunct private equity fund, for alleged schemes to defraud advisory clients and misappropriation of client assets. According to the SEC, Defendants acquired five insurance companies and seven reinsurance trusts and caused the companies and trusts to enter into investment management agreements with registered investment advisers owned by Defendants. The SEC alleges that Defendants then caused the companies and trusts to transfer money in exchange for securities that Defendants knew were worthless or overvalued. One Defendant owner has agreed to pay disgorgement, prejudgment interest, and civil penalties to be determined at a later date.

SEC Litigation Release