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Kevin James O'Rourke and his firm, Del Mar's Western Pacific Capital Management, were sanctioned by the Securities and Exchange Commission (SEC) yesterday (Sept. 19). O'Rourke raised $4.8 million for a San Diego software firm, Ameranth, and took 10% in success fees without informing the buyers of the arrangement, says the SEC. O'Rourke induced clients to invest in a hedge fund, the Lighthouse Fund, without disclosing that the fund would initially invest primarily in Ameranth, for which Western Pacific would get its 10% fee. "O'Rourke misused fund assets and lied to his clients who invested in the fund," says the SEC. The securities agency hit O'Rourke with a cease and desist order and $130,000 fine. O'Rourke must disgorge $482,745 plus prejudgment interest to the U.S. Treasury.

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