D.C. Circuit Affirms SEC Order Against Investment Advisors for "Marking the Close"
On July 14, 2015, the United States Court of Appeals for the District of Columbia Circuit affirmed a May 16, 2014 Order of the Securities and Exchange Commission that found that investment advisers violated the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. The SEC issued the enforcement action against investment advisers Donald L. Koch and Koch Asset Management, LLC (KAM) for "marking the close" and thereby manipulating the closing price of certain stocks held in client portfolios on the last trading date of consecutive quarters.