In the Matter of Pennant Management, Inc. Admin. Proc. File No. 3-18884
Oct. 14, 2022
On November 6, 2018, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Pennant Management, Inc. (the “Respondent”). In the Order, the Commission found that, from May 2013 to September 2014, the Respondent violated federal securities laws by negligently failing to perform adequate due diligence and monitoring of certain investments contrary to representations in its Form ADV Part 2A and in certain communications with its clients, ultimately contributing to substantial losses. The Commission ordered, and the Respondent has paid, a total of $400,000.00 in civil money penalties to the Commission. In the Order, the Commission created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties collected can be distributed to those harmed by the Respondent‘s conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. IA-5061.
On May 4, 2020, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund. See the Commission’s Order: Release No. 34-88804.
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