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.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.
Additional Reads
-
Top 8 today September 19, 2023 -
-
Top 8 today September 13, 2023
-
