Jeff Smith 4 p.m., Sept. 23
SEC Levels Fraud Charges Against Local Firm
The Securities and Exchange Commission today (Nov. 10) charged Del Mar's investment advisory firm, Western Pacific Capital Management, and its president Kevin James O'Rourke, with fraud.
According to the SEC, during 2005 and 2006, Western Pacific and O'Rourke were brokers in a non-public offering of stock in Ameranth, Inc., a software maker that among other things provides systems to the gambling industry. Ameranth paid Western Pacific a 10% "success fee," according to the SEC.
The firm and O'Rourke advised their clients to buy the Ameranth stock but did not reveal the 10% fee, according to the SEC. Western Pacific received almost half a million dollars in success fees from Ameranth.
Also, the SEC says that from 2005 to 2008, Western Pacific and O'Rourke repeatedly stated that the Lighthouse Fund, a hedge fund they managed, was only 25% invested in illiquid assets, when in fact the figure was 90%. The firm and its president were charged with violations of securities laws.
More like this:
- SEC charges Total Wealth Management with fraud — April 15, 2014
- SEC whacks NY firm for helping San Diego adviser — Dec. 30, 2013
- SEC charges San Diego investment advisor with wrongly steering funds — Aug. 30, 2013
- O'Rourke Sanctioned for Lying to Clients — Sept. 20, 2012
- SEC Charges La Jolla Software Firm, Retail Pro, with Accounting Fraud — Sept. 4, 2008