SEC Charges Investment Adviser for Custody Rule and Form ADV Violations

ADMINISTRATIVE PROCEEDING 

File No. 3-22031

August 23, 2024 – The Securities and Exchange Commission today announced settled charges against investment advisory firm Cedar Legacy LLC, for failing to deliver required audited financial statements in a timely manner and failing to promptly file an annual updating amendment to its Form ADV. 

According to the SEC’s order, Cedar Legacy, which was formerly registered with the Commission and was based in New York, failed to deliver to investors within the prescribed time period audited financial statements prepared in accordance with GAAP for two private funds for fiscal years 2020 and 2021. According to the SEC’s order, the firm also failed to promptly file an annual updating amendment to its Form ADV after receiving the fiscal year 2021 audit opinion for a third private fund. The SEC’s order further finds that Cedar Legacy failed to adopt and implement written policies and procedures reasonably designed to prevent these violations. 

The SEC’s order finds that, based on the foregoing, Cedar Legacy willfully violated Sections 204(a) and 206(4) of the Advisers Act and Rules 204-1(a), 206(4)-2, and 206(4)-7 thereunder. Without admitting or denying the findings, Cedar Legacy consented to a cease-and-desist order and a censure and agreed to pay a $75,000 penalty.

The SEC’s investigation was conducted by Emmy E. Rush and George N. Stepaniuk in the New York Regional Office, and was supervised by Thomas P. Smith, Jr. The examination that led to the investigation was conducted by Jennifer McCarthy, Mavis A. Kelly, and Ryan Ames.