- 1999
- $125,000
Entity respondent and its former Chief Investment Officer were found to have fraudulently promoted their “incubator” Growth
Fund. They allegedly publicly advertised that the Growth Fund achieved a 61.99 percent return in 1996 and was the number one fund in its category, but did not disclose/clarify that IPOs had a large impact on that return. And, given that net assets had grown from $200,000 to $380,000 to $109 million since the result was achieved, the IPO success was highly unlikely to be repeated.
