Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

News: Guggenheim Partners Investment Management Agrees to Pay Fine for Violation of Disclosure to Clients

In July 2010, a senior executive at Guggenheim, a subsidiary to Guggenheim Partners LLC, allegedly accepted a loan from an advisory client and failed to report it to the compliance staff. According to the SEC, the executive took a loan of $50 million dollars to personally invest in a business acquisition made by Guggenheim’s parent company.

Later, in August of 2010, Guggenheim allegedly engaged in two transactions for their advisory client, one in accepting the loan, while the client also personally invested in Guggenheim’s parent venture.

The SEC asserted that many of the other senior officials also knew about the loan but failed to report it.

The SEC further alleged that the investment company unintentionally put certain investments in managed assets category and charged the client $6.5 million in asset management fees. The SEC also stated that the company’s compliance program was not structured well enough to stop violations of the Federal Securities Laws and that Guggenheim failed to abide by the code of ethics.

Without confirming or denying the charges, Guggenheim has accepted to pay the $20 million dollar penalty.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram