The U.S. Securities and Exchange Commission sanctioned a Chicago-based investment adviser and its owner for manipulating securities prices to benefit themselves over investors in a fund they managed.
Without admitting or denying the SEC's findings, the adviser, Wanger Investment Management, Inc., and Eric David Wanger, its owner, chief compliance officer and president agreed to be ordered to cease and desist from violating section 17(a) of the Securities Act of 1933, sections 10(b) and 16(a) of the Securities Exchange Act of 1934 and rules 10b-5 and 16a-3, and sections 206(1) through (4) of the Investment Advisers Act of 1940 and rule 206(4)-8.
The SEC fined Wanger $75,000 and barred him from the advisory and securities industries and prohibited him from working in the fund business, with the right to apply for reentry after one year. The SEC censured the firm, which has deregistered as an SEC adviser, and ordered it to disgorge its improperly computed management fees, with prejudgment
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