- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-06-16T17:51:00
Pacific Investment Management Company (PIMCO) agreed to pay a combined $9 million to resolve two separate actions brought by the Securities and Exchange Commission (SEC) regarding alleged violations of the Advisers Act.
PIMCO was fined $6.5 million in a case alleging disclosure violations, in addition to being assessed a $2.5 million penalty in a case alleging policy and procedure failures. The firm agreed to cease and desist and be censured in settling each action, said the SEC in a press release Friday.
In the disclosure case, the SEC alleged PIMCO inadequately disclosed paired interest rate swaps in its PIMCO Global StocksPLUS & Income Fund (PGP) portfolio “had become a material source of distributable income, which enabled PIMCO to maintain PGP’s dividend rate. The continued use of paired swaps also contributed to a decline in the net asset value of PGP.”
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Financial services firm Cantor Fitzgerald agreed to pay a $1.4 million penalty as part of a settlement with the Securities and Exchange Commission addressing alleged reporting failures.
New York-based investment adviser Betterment agreed to pay $9 million to settle charges levied by the Securities and Exchange Commission over material misstatements and omissions related to its automated tax loss harvesting service.
E. Magnus Oppenheim & Co. must pay $50,000 and hire an independent compliance consultant to settle Securities and Exchange Commission charges of failing to implement compliance policies and procedures following the death of its founder and CCO.
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
