SEC Slaps N.C. Investment Adviser
WASHINGTON (CN) - The SEC administratively charged North Carolina-based Chariot Advisors and its former owner Elliott Shifman with lying to investors about their so-called "algorithmic currency trading."
The SEC said in a statement that Shifman misled an investment fund's board of directors "about the nature, extent, and quality of services that the firm could provide as he touted the competitive benefits of algorithmic trading in two presentations before the board."
In its administrative cease and desist order, the SEC said: "In fact, at the time of Shifman's representations to the Board, Chariot Advisors had not devised or otherwise possessed any algorithms or computer models capable of engaging in the currency trading that Shifman described during the 15(c) process. Moreover, after the Fund launched in July 2009, Chariot Advisors initially did not use an algorithm to perform the Fund's currency trading as represented to the Fund's Board, but instead hired an individual trader who was allowed to use discretion on trade selection and execution. Respondents' misconduct also led directly to misrepresentations and omissions in the Chariot Fund's registration statement and prospectus filed with the