SEC Charges Money Manager and Firm for Misleading Advertisements (with Lofchie Comment)
The SEC charged a money manager and his firm with making false claims through Twitter, newsletters and other communications.
According to the SEC order, Mark A. Grimaldi, the majority owner, president and chief compliance officer at Navigator Money Management ("NMM"), selectively touted the past performance of the Sector Rotation Fund and specific securities recommendations made to clients. In particular, Grimaldi used a newsletter called The Money Navigator, which had over 60,000 subscribers, to solicit clients for NMM and investors for the Sector Rotation Fund. The SEC order details several misleading advertisements made by NMM and Grimaldi in The Money Navigator and other newsletters.
Lofchie Comment: This disciplinary action is (a little bit) interesting only in that the false claims were made by a (very closely) affiliated entity rather than by the adviser in its corporate capacity.