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SEC judge bars fund manager over valuation deficiencies

Dec 28 2012 Stuart Gittleman, Compliance Complete

The chief Securities and Exchange Commission administrative law judge has sanctioned a former mutual fund lead portfolio manager for failing to adequately update the fund's valuation committee on key developments affecting the fund's underlying assets. "Despite an unblemished twenty-year record of outstanding performance, Premo's willful, knowing lack of judgment on one security for a little over two months is contrary to the standard required of someone in her position," the ALJ, Brenda P. Murray, said of Lisa B. Premo, the portfolio manager. The ALJ ordered Premo to cease and desist from aiding and abetting or causing violations of Sections 206(1) and (2) of the Investment Advisers Act of 1940 and 22c-1(a) under the Investment Company Act of 1940, and barred her for five years from association with an investment adviser or a registered investment company. The ALJ did not, however, impose a civil monetary penalty against Premo or order disgorgement.

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