Alert March 26, 2013

Goodwin Procter Alert: Aiding and Abetting Liability of Fund Manager for Use of Unregistered Broker – Recent SEC Enforcement Action

Goodwin Procter Alert analyzes recent settled administrative proceedings in which the SEC found that a finder engaged by a fund manager had not complied with the broker registration requirements of the federal securities laws and that the fund manager and one of its senior executive officers had aided and abetted the finder’s violation.  The Alert discusses the implications of the settlements for fund managers and principals and lists steps fund managers and other issuers conducting private placements can take to avoid similar SEC enforcement activity.