Court Orders Former F-Squared CEO to Pay Over $13 Million

The SEC charged Present and F-Squared in 2014 with misleading investors about the AlphaSector strategy, the flagship product of F-Squared which Present launched in the wake of the financial crisis. F-Squared agreed to pay $35 million and admit wrongdoing to settle the agency’s charges. After a three-and-a-half week trial, the jury deliberated for less than one day before finding Present guilty on all of the agency’s charges against him.

On March 22, 2018, the court entered a final judgment against Present, permanently enjoining him from violating Sections 206 and 207 of the Investment Advisers Act of 1940 and from aiding and abetting violations of Section 206 of the Advisers Act. The court also ordered Present to pay disgorgement of $10,849,604 plus interest of $1,377,003, and a $1,575,000 penalty. The court, in its order granting the SEC’s motion for entry of a final judgment, found that, based on the evidence presented at trial, “Present’s conduct was egregious,” and that his “misstatements were consistent in message, broadly disseminated, and increasingly bold.”

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit  www.securitieslawyer101.com.  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.