December 19, 2016
The SEC has charged the founder of Platinum Partners and two of its hedge fund advisory firms with defrauding investors.
SEC investigators discovered “suspicious activity during an examination of the firms,” resulting in SEC enforcement staff conducting a deeper analysis, according to an SEC release.
The SEC complaint, filed in federal court in Brooklyn, alleges that Platinum Partners founder Mark Nordlicht and executives misrepresented and inflated the performance of certain funds.
“Investors repeatedly presented a false picture of the performance of the Platinum funds and their overall liquidity situation,” said Andrew Ceresney, director of the SEC’s Division of Enforcement. “As investors sought redemptions, the defendants engaged in numerous improper measures in an attempt to meet redemption requests.”