Quantek Chiefs Settle With SEC Over Alleged Lies

May 30 2012 | 1:07pm ET

The former managers of defunct hedge fund Quantek Asset Management have settled allegations that they lied to investors.

Javier Guerra and Ralph Patino agreed to pay $3.1 million in disgorgement and penatlies, although neither admitted or denied any wrongdoing at Miami-based Quantek. The hedge fund is in liquidation, and Guerra resigned from the firm last year after an arbitration panel found that he had made misleading statements about the once-$1 billion fund.

According to the Securities and Exchange Commission, Guerra and Patino lied to investors about their own investments in Quantek, which the regulator says did not exist, and about loans made to several entities related to Guerra.

"When making an investment decision, private fund investors are entitled to the unvarnished truth about material information such as management's skin in the game or the adviser's handling of related-party transactions," Bruce Karpati, co-head of the SEC's asset management enforcement division, said.

In addition to the fines and disgorgement, Guerra accepted a five-year ban and Patino a one-year ban.

"I am proud of what we achieved at Quantek," Guerra said in a statement.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of