On September 10, 2025, the Securities and Exchange Commission (SEC) announced a nearly $10 million settlement with Tomislav “Tom” Vukota and his firms, Vukota Capital Management (VCM) and VCM Global Asset Management. The SEC alleged that Vukota engaged in fiduciary breaches, misled investors, and diverted private fund assets for his firms’ benefit. While the settlement was reached without an admission of wrongdoing, the details reveal serious misconduct that left investors at risk.
If you invested with Vukota, one of his firms, or a similar private fund adviser and experienced losses, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in brokerage firm fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
How Vukota’s Practices Harmed Investors
The SEC complaint described a multi-year pattern of negligence and deception, with several practices that placed investor money in jeopardy.
Improper Loans Between Funds
From at least 2017 through May 2022, Vukota and his firms caused at least seven private funds to make short-term loans to VCM at below-market rates. These loans:
- Were not disclosed to investors.
- Violated the funds’ partnership agreements.
- Shifted losses from poorly managed funds to other investors.
The interest rates highlight the problem:
- 2017: no interest charged.
- 2018: 5% rate.
- 2019–2022: reduced to 3%.
The SEC calculated that Vukota and his firms received about $1.3 million in ill-gotten gains from these transactions.
Misleading Buyout Offers
The SEC also found that Vukota sent letters to investors in four private funds offering to buy out their interests. These offers:
- Failed to disclose that Vukota himself was the intended buyer.
- Did not obtain consent for this conflict of interest.
- Resulted in investors selling at prices below the true value of the assets.
False Marketing Claims
From 2017 to 2023, Vukota and VCM Global Asset Management made false statements about the Vukota Multi-Strategy Fund (VMSF). Misrepresentations included:
- Inflating assets under management.
- Claiming the fund was audited when no audit had occurred since 2014.
- Misstating investment strategies and fund oversight.
These tactics deprived investors of critical information needed to make informed decisions.
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The Settlement and Investor Implications
The SEC settlement included $6,943,212 in disgorgement, $1,766,582 in prejudgment interest, and a $1,000,000 civil penalty—totaling nearly $10 million, subject to court approval. While this provides regulatory resolution, it does not necessarily compensate individual investors.
Fiduciary Duty Breaches
Investment advisers are legally required to act in their clients’ best interests. The SEC alleged that Vukota repeatedly violated these fiduciary duties through undisclosed loans, conflicts of interest, and false reporting.
What This Means for Investors
- Settlements don’t equal accountability: Advisers often settle without admitting wrongdoing.
- Recovery isn’t automatic: SEC penalties go to the government, not directly to investors.
- Legal options may remain: Investors may still pursue arbitration or other claims to recover losses.
How Meyer Wilson Werning Can Help Investors in Vukota and His Firms
Cases like Vukota’s highlight how investment advisers can abuse their positions of trust, leaving investors to bear the consequences. At Meyer Wilson Werning, we represent investors—not advisers or firms—in claims involving breaches of fiduciary duty, misleading disclosures, and unsuitable investments. If you lost money through Vukota’s funds or similar private offerings, we can help you evaluate your recovery options through arbitration or other legal action. Contact us today for a free consultation.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
Who is Tomislav “Tom” Vukota, and why is he in the news?
Tomislav Vukota is the founder of Vukota Capital Management (VCM) and VCM Global Asset Management. On September 10, 2025, the SEC announced a nearly $10 million settlement with Vukota and his firms after alleging fiduciary breaches, misleading disclosures, and misuse of investor funds.
What specific misconduct did the SEC allege against Vukota and his firms?
The SEC alleged three main practices:
- Improper loans between funds at below-market rates, violating partnership agreements.
- Misleading buyout offers that concealed Vukota as the buyer, leading investors to sell below fair value.
- False marketing claims about fund size, audits, and strategies to attract and retain investors.
What does the $10 million SEC settlement include?
The settlement breaks down into:
- $6.94 million in disgorgement (ill-gotten gains).
- $1.77 million in prejudgment interest.
- $1 million in civil penalties.
This settlement resolves regulatory claims but does not directly compensate investors who lost money.
Do settlements like this automatically reimburse investors?
No. SEC settlements generally impose penalties on the adviser but do not automatically result in restitution. Investors who suffered losses often must pursue separate arbitration or legal action to recover their funds.
What are investors’ legal options if they lost money with Vukota funds?
Investors may pursue arbitration claims or lawsuits for breaches of fiduciary duty, misrepresentation, or unsuitable investments. Consulting with a securities fraud attorney can help determine the best recovery path based on your circumstances.
Recovering Losses Caused by Investment Misconduct.
