Alternative fund manager Equinox Fund Management, LLC recently settled charges with the Securities and Exchange Commission (SEC). The SEC alleged that Equinox misrepresented and misled investors about a specific fund named The Frontier Fund (TFF). The SEC alleged that Equinox misrepresented the amount of management fees it charged. As a result of the SEC allegations, Equinox agreed to refund its investors about $5.4 million plus $600,000 in prejudgment interest. The SEC has also imposed a $400,000 fine.
A FINRA arbitration panel awarded investors $1.9 million in compensatory and punative damages against a broker-dealer named NSM Securities, Inc., and its founder, Niyukt Raghu Bhasin. The investors claimed the firm churned their accounts. The firm has been barred from any membership or association with FINRA. Mr. Bhasin was barred from the securities industry in January 2015.
A couple in North Carolina recently filed a statement of claim against Morgan Stanley due to investment losses in an energy investment named Morgan Stanley Cushing MLP High Income ETN. The couple are claiming that they lost over $100,000 of the $150,000 they had invested. This investment has been struggling since the second half of 2014 when oil prices in the United States declined. The couple is alleging that Morgan Stanley breached its fiduciary duties and committed fraud.