Innaccurate Data Costs Virtus $16.5 Million
The Securities and Exchange Commission (SEC) settled with Virtus Investment
Advisers for $16.5 million, from charges stemming from publicized false performance
data. the report was generated by subadviser F-Squared, which was ultimately found to
be significantly fabricated, according to a SEC statement.
F-Squared was already facing its own battles, which include filing for bankruptcy in July
and paying a $35 million settlement, due to defrauding investors through falsified
Andrew J. Ceresney, director of the SEC Enforcement Division, stated “Virtus accepted
F-Squared’s historical performance misrepresentations at face value and ignored red
flags that called these statements into question, and if an investment adviser chooses to
advertise, it is responsible for the content and accuracy of its ads.”
At this point in time Virtus has declined to comment.
The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the
protection of investors and handles cases involving securities arbitration
misrepresentation, overconcentration, broker fraud, negligence and breach of trust.