the Matter of Platinum Equity Advisors, LLC Admin. Proc. File No. 3-18194
Oct. 14, 2022
On September 21, 2017, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Platinum Equity Advisors, LLC (the “Respondent”). In the Order, the Commission found that, from the second quarter of 2012 to 2015, the Respondent violated federal securities laws by charging three of its private equity fund clients with about $1.8 million in undisclosed broken deal expenses. The Commission ordered the Respondent to pay a $1,500,000.00 civil money penalty to be transferred to the U.S. Treasury. The Commission further ordered the Respondent to pay a total of $1,902,132.00 in disgorgement and prejudgment interest (“Disgorgement Fund”).
The Order provides for the Respondent to deposit the Disgorgement Fund into an escrow account, acceptable to the Commission staff. The Respondent is responsible for distributing the Disgorgement Fund in accordance with the Order. Tax compliance and any related administrative expenses are the responsibility of the Respondent. The Order requires that the Respondent submits to the Commission staff a final accounting and certification of the disposition of the Disgorgement Fund within 120 days of the Order. The Order further provides that any undistributed funds shall be paid to the Commission for transfer to the U.S. Treasury. See the Commission’s Order: Release No. IA-4772.
For more information, please contact the Commission:
Office of Distributions