SEC Charges Florida Investment Adviser with Fraud
Litigation Release No. 24815 / May 12, 2020
Accounting and Auditing Release No. 4140 / May 12, 2020
Securities and Exchange Commission v. TCA Fund Management Group Corp. and TCA Global Credit Fund GP, Ltd., No. 1:20-cv-21964 (S.D. Fla. filed May 11, 2020)
The Securities and Exchange Commission today filed fraud charges against Florida-based investment adviser TCA Fund Management Group Corp. (TCA) and its affiliate, TCA Global Credit Fund GP, Ltd. (TCA-GP), for an alleged fraudulent scheme conducted by TCA to inflate asset values and performance returns of funds it managed.
The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, charges TCA and TCA-GP with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint separately charges TCA with violating the anti-fraud provisions of Sections 206(1), 206(2), 206(4), and 207 of the Investment Advisers Act of 1940 and Rules 206(4)-7 and 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement of allegedly ill-gotten gains and prejudgment interest, financial penalties, and the appointment of a receiver over TCA, TCA-GP, and the funds TCA managed.
The SEC's investigation, which is ongoing, is being conducted by Shan Chang, Raynette R. Nicoleau, and Allen J. Genaldi, under the supervision of Chedly C. Dumornay and Glenn S. Gordon, and with the assistance of Jose Molina, Victor Mendoza, William Tudor, Roda Johnson, Jeannie M. Cabot, and John C. Mattimore, of the SEC's Miami Regional Office. The litigation will be handled by Andrew O. Schiff and Stephanie N. Moot.