SEC Charges Two Colorado Fund Managers and Their Sole Owner for Improperly Charging Expenses to Private Funds

ADMINISTRATIVE PROCEEDING

File No. 3-22392

January 10, 2025 – The Securities and Exchange Commission today announced settled charges against Colorado-based fund managers, One Thousand & One Voices Management, LLC and Family Legacy Capital Credit Management, LLC, and their sole owner, Hendrik F. Jordaan, for breaches of fiduciary duty regarding expenses charged to two private funds.

The SEC's order finds that from January 2019 through December 2023, One Thousand & One Voices, Family Legacy Capital, and Jordaan, who advised two private funds, improperly charged certain expenses to the funds and failed to disclose the resulting conflicts of interest, whereby they were incentivized to charge the funds for expenses rather than pay the expenses themselves.  According to the order, those expenses included payments for outsourced financial services, public relations, and legal fees.  The order also found that, from 2019 through at least 2022, One Thousand & One Voices and Family Legacy Capital submitted invoices to the funds for unsupported and unspecified expenses without taking reasonable steps to confirm that the funds should have paid such expenses.  Finally, the SEC’s order found that One Thousand & One Voices and Family Legacy Capital failed to adopt and implement policies and procedures reasonably designed to prevent violations of the applicable securities laws and regulations. 

The order finds thatOne Thousand & One Voices, Family Legacy Capital, and Jordaan violated, or caused violations of the anti-fraud provisions of Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-7 and 206(4)-8(a)(2) thereunder.  Without admitting or denying the SEC’s findings, One Thousand & One Voices, Family Legacy Capital, and Jordaan consented to the entry of an order imposing a cease-and-desist order and a censure against each of them and ordering them to pay, jointly and severally, civil money penalties of $250,000.

The SEC’s investigation was conducted by Marc D. Ricchiute with assistance from Tracy Bowen and Christopher Martin, all of the SEC’s Denver Regional Office, and Brian Fitzpatrick of the Enforcement Division’s Asset Management Unit, and was supervised by Kimberly L. Frederick, Andrew B. Dean, and Corey A. Schuster, also of the Asset Management Unit.