Thursday, September 21, 2023
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Can’t Do That, SEC Tells Investment Adviser

WASHINGTON (CN) - The SEC charged a Morristown, N.J., investment adviser with misleading investors in a collateralized debt obligation at the behest of a third-party hedge fund.

The SEC on Friday announced charges against Harding Advisory LLC and its owner Wing Chau.

The SEC said in a statement that the defendants "compromised their independent judgment as collateral manager to a CDO named Octans I CDO Ltd. in order to accommodate trades requested by a third-party hedge fund firm whose interests were not necessarily aligned with the debt investors."

The hedge fund was Magnetar Capital, which had invested in the CDO, the SEC aid in a statement.

Proceedings before an administrative law judge will determine what relief the SEC will seek, the agency said.

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