ARTICLE
12 April 2019

Investment Adviser Settles SEC Charges For False Statements And Misappropriation

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Cadwalader, Wickersham & Taft LLP

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An investment adviser and its founder agreed to settle SEC charges for stealing millions of dollars from a private fund.
United States Corporate/Commercial Law
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An investment adviser and its founder agreed to settle SEC charges for stealing millions of dollars from a private fund.

According to the SEC Order, Dennis Gibb, the founder of Sweetwater Investments, Inc. ("Sweetwater"), stole over $3 million from Sweetwater Income Flood LP, a private fund that Sweetwater managed. The SEC alleged that Mr. Gibb created and distributed to investors false account statements and tax documents which inflated assets. In addition, Mr. Gibb reported false amounts of assets under management in Form ADV submitted to the SEC.

To settle the charges, Mr. Gibb and Sweetwater agreed to disgorge over $1 million and to pay prejudgment interest of approximately $20,000.

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