Saturday, 22 October 2016
Last updated 5 hours ago
Dec 8 2005 | 5:06pm ET
Vincent Lenarcic Jr., a managing member of Charlotte, N.C.- based QMA Investment Management, has been charged with fraud by the Securities and Exchange Commission for misappropriating fund assets from Fundamental Growth Advisors.
Lenarcic is the founder of New Vision Investment Funds, which is Fundamental Growth’s general partner. Lenarcic allegedly transferred $807,000 of Fundamental Growth’s assets to QMA and New Vision accounts to pay debts, wages and operating expenses.
In a complaint filed by the SEC, Lenarcic is also alleged to have sent false statements to investors about the use of Fundamental Growth’s assets in order to conceal the fraud. Lenarcic’s alleged misappropriations caused Fundamental Growth’s assets to dwindle from $2.5 million to less than $400, the SEC charged.
The firm also failed to meet liquidation demands of several investors. The SEC is seeking a permanent injunctive relief against Lenarcic and a repayment of all misappropriated funds. He could also face civil penalties.