ADMINISTRATIVE PROCEEDING
File No. 3-20921

June 30, 2022 - The Securities and Exchange Commission today announced settled charges against Corona Associates Capital Management, LLC, a California-based unregistered investment adviser, and its principals, Julian Scurci and John Scurci, for making misrepresentations to investors in two private funds they managed.

According to the SEC's order, from at least 2013 to the present, Corona represented in offering materials for its private funds that the funds' financial statements were audited annually and that Corona would provide investors with audited financial statements, and also identified certain audit firms as auditors for the funds. The order finds that, while the Scurcis made efforts to engage an auditor, for years they failed to actually do so. Thus, according to the order, the funds' financial statements were never audited and investors never received the promised audited financial statements.

The SEC's order finds that Corona, Julian Scurci, and John Scurci willfully violated the antifraud provisions of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Without admitting or denying the SEC's findings, Corona, Julian Scurci, and John Scurci consented to a cease-and-desist order and a censure, and agreed to pay civil penalties of $50,000, $20,000, and $10,000, respectively. Corona also agreed to comply with certain undertakings, including the retention of an independent compliance consultant.

The SEC's investigation was conducted by Christina N. Filipp and supervised by Jeremy E. Pendrey, both from the Asset Management Unit in the San Francisco Regional Office.