American Pegasus, an investment advisory and fund operating company, recently announced the appointment of its new general counsel and chief compliance officer, Henry Wolfgang Carter. 

Carter has more than 21 years experience as an attorney and financial industry compliance expert. Prior to joining American Pegasus earlier this year, Carter served in various legal and compliance capacities at other financial services firms, including E*TRADE Securities, where he was vice president and chief compliance officer from 1997 to 2000. He also served as associate general counsel for E*TRADE Group from 2000 to 2001.

Carter's appointment follows a settlement that American Pegasus, along with its affiliated company, American Pegasus Investment Management, reached with the Securities and Exchange Commission over alleged violations of securities laws by the firms and three individuals formally affiliated with them. Neither the American Pegasus companies, nor the former individuals, have admitted or denied the SEC findings.

American Pegasus fully cooperated with the SEC during its investigation, which related to transactions that occurred between 2007 and the spring of 2009. The three individuals voluntarily resigned their positions earlier this year, and American Pegasus has implemented new compliance measures designed to improve communications with investors and protect against conflicts of interest.

American Pegasus also has reconstituted its senior management team and legal/compliance operations, and brought in two seasoned and experienced independent board members for the funds that the firm advises. These new board members are Isaac Hunt, former SEC Commissioner under Presidents Bill Clinton and George W. Bush; and Kathy Levinson, former president and chief operating officer of E*TRADE Group, and a former senior executive at Charles Schwab.

The new general manager of American Pegasus is Pauline Lee. With more than 15 years of experience in data analysis, financial services, and investment management operations, Lee has been associated with American Pegasus since 2003. Most recently she served as COO of American Pegasus.