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CCO who was ‘sole person controlling’ investment firm charged with recidivist concentration violations
By 
Adrianne Appel2025-03-19T11:53:00
An investment company and its founder, president, and chief compliance officer flagrantly kept violating mutual fund rules for multiple years after settling with the Securities and Exchange Commission, the SEC said in a complaint against the company.
The SEC’s mandate is to be a watchdog for investors, and certain SEC rules are designed to steer companies and funds away from activities known to place investors’ money at high risk, or that would lead to fraud. One such rule is the agency’s concentration policy, which prohibits concentrating investment funds in few industries, which the SEC considers highly risky.
New Jersey-based Upright Financial Corporation and David Yow Shang Chiueh, who served as CCO of the corporation and CEO of its growth fund, settled with the SEC in November 2021 for violating the SEC’s concentration policy by investing more than 25 percent of its assets in one industry, the SEC alleged in a press release Monday. Upright currently has $62 million in assets under management.
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