Prime Group allegedly did not disclose that $18 million in fund fees went to a firm wholly owned by its CEO.
The SEC concluded its first enforcement action under the new marketing rule last week.
In dissent, Commissioner Peirce said the new rules will harm investors, while Commissioner Uyeda called them ‘arbitrary and capricious.’
Theorem Fund Services allegedly misappropriated and misused investors’ funds.
The new rules will increase liquidity requirements and change the fee structure.