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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.

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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.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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