{"id":22004,"date":"2024-06-14T16:02:30","date_gmt":"2024-06-14T16:02:30","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/06\/14\/sec-hits-ria-with-100k-marketing-rule-fine\/"},"modified":"2024-06-14T16:02:30","modified_gmt":"2024-06-14T16:02:30","slug":"sec-hits-ria-with-100k-marketing-rule-fine","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/06\/14\/sec-hits-ria-with-100k-marketing-rule-fine\/","title":{"rendered":"SEC Hits RIA With $100K Marketing Rule Fine"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/899472647\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/12\/2022-3-2-SEC_ALM_640x640_Diego-M-Radzinschi.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/12\/2022-3-2-SEC_ALM_640x640_Diego-M-Radzinschi.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p>\u201cTwenty Acre provided these materials directly to prospective investors as attachments to email communications and routinely uploaded the materials to third-party databases that prospective investors were able to access,\u201d according to the order.<\/p>\n<p>\u201cWhen advertising the Fund\u2019s performance in these materials, Twenty Acre presented performance returns that were experienced by a single limited partner that had invested in the Fund at inception and was eligible for all Fund investments,\u201d the SEC said.<\/p>\n<p>This investor\u2019s performance was presented to prospective investors as the fund\u2019s performance.<\/p>\n<p>According to the order, \u201cthe investor\u2019s performance, at times, differed substantially from, and was significantly higher than, the Fund\u2019s performance, because certain successful IPO investments the Fund had made were credited to the investor\u2019s capital account in greater proportion than other investors\u2019 capital accounts.\u201d<\/p>\n<p>These other investors in the fund, due to investment restrictions under FINRA Rules 5130 and 5131, were unable to participate fully in the IPO investments.<\/p>\n<p>Beginning in January 2022, Twenty Acre presented as the fund\u2019s returns \u201cthe positive 44.8% net performance that the single investor achieved in 2021, whereas the undisclosed net performance of the Fund was negative 5.7% in 2021,\u201d the SEC said.<\/p>\n<p>Further, \u201con the first substantive page of the pitch decks, Twenty Acre presented performance results, such as the positive 44.8% return for 2021, under the heading \u2018FUND OVERVIEW,\u2019 without an accompanying qualification or disclaimer on that page suggesting such results were anything other than performance results of the Fund,\u201d the SEC said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cTwenty Acre provided these materials directly to prospective investors as attachments to email communications and routinely uploaded the materials to third-party databases that prospective investors were able to access,\u201d according to the order. \u201cWhen&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":22005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/06\/sec-hits-ria-with-100k-marketing-rule-fine.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22004"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22004"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22005"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}