SEC Charges Brian Williamson Former Oppenheimer Fund PM with Misleading Investors.
Brian Willamson, hedge fund manager is being targeted by regulators for misleading clients. The SEC has charged a former portfolio manager at Oppenheimer & Co. with misleading investors about the valuation and performance of a fund consisting of other private equity funds.
The SEC said that Brian Williamson’s quarterly reports and marketing materials misstated the valuation of the Oppenheimer fund’s holdings. He also sent marketing materials reporting an internal rate of return that failed to deduct fees and expenses. As a result, the fund’s reported performance as measured by its internal rate of return – a key indicator of the fund’s performance – was significantly enhanced.
Earlier this year, Oppenheimer agreed to pay $2.8 million in a settlement of related charges.
Brian Williamson marketed Oppenheimer Global Resource Private Equity Fund I, L.P. to pensions, foundations, endowments, and high net worth individuals and families. Brian Williamson also modified the Oppenheimer fund marketing materials in October 2009 by increasing the reported value of the fund’s largest investment – Cartesian Investors-A LLC – from $6 million to approximately $9 million, the SEC says.