U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23549 / May 31, 2016

Securities and Exchange Commission v. Momentum Investment Partners LLC (D/B/A Avatar Investment Management) and Ronald J. Fernandes, Civil Action No. 16-cv-00832 -VLB (D. Conn. filed May 31, 2016)

SEC Charges Connecticut-Based Investment Adviser for Failure to Disclose Fees to Clients

The Securities and Exchange Commission today announced fraud charges against Connecticut-based investment adviser Momentum Investment Partners LLC (doing business as Avatar Investment Management), and one of its principals, Ronald J. Fernandes, for failing to disclose to some of Avatar's advisory clients certain fees they were being charged.

According to the SEC's complaint, filed in federal court in Connecticut:

The SEC's complaint alleges that Avatar and Fernandes violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, Avatar violated Sections 206(4) and 207 of the Advisers Act and Rule 206(4)-7 thereunder, and Fernandes aided and abetted Avatar's violations of Sections 206(1), 206(2), 206(4) and 207 of the Advisers Act and Rule 206(4)-7 thereunder, and seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and a civil penalty.

The SEC's investigation was conducted by Lawrence Pisto, Ruth Anne Heselbarth and David London and supervised by Robert Baker. The case was a referral from an exam conducted by Marie Hagelstein, Ken Leung and Huu Son and supervised by Liza Fine-Magnan. The SEC's litigation will be led by David London.

SEC Complaint

 


Modified: 05/31/2016