SEC 'fine' Philly firm for pay-to-play violation


THE Securities Exchange Commission secured almost $300k settlement from a Philadelphia private equity firm for what the SEC claimed were pay-to-play rule violations.

To compound the firm's difficulties, it had claimed adviser firm exemption from SEC regulation for an affiliate firm's trading activities.

An associate of TL Ventures Inc. made political contributions to fund the Governor of Pennsylvania's campaign and separately to a candidate running for Mayor of Philadelphia, back in 2011 - contributions amounting to just $4,500.

The settlement figure of more than a quarter-million-dollars avoided expensive courts' costs for the adviser firm and helped mitigate against damage to its corporate reputation.

THE SEC claimed the firm continued to receive compensatory advisory fees from State and City pension funds in breach of the Commission's two year moratorium - post political contributions- for an affiliate firm under its control, in breach of rules for firms which make donations to publicly elected officials with power to influence the selection or retention of adviser firms.

The Adviser Act 2010 empowered the SEC to scutinize private equity firm compliance programs like never before with some firms caught out by a failure to update compliance monitoring and reporting regimes.

Source: U.S. Securities Exchange Commission