Quantek Asset Management Settles With SEC for $3.1 Million
Miami-based Quantek Asset Management LLC (“QAM”) has settled claims by the Securities and Exchange Commission (“SEC”) that it falsely represented that its managers had personally invested in the Quantek Opportunity Fund (“Quantek Fund”).
The Quantek Fund is a $1 billion Latin America-focused hedge fund. The SEC claims that, contrary to statements made to prospective investors, QAM’s executives never invested their own money in the Quantek Fund. In addition, the SEC alleged that QAM misled investors about the investment process of the funds it managed, as well as, related-party transactions involving its former portfolio manager Javier Guerra.
The SEC claims that QAM employees misstated key terms of related-party loans and backdated material documents to support the misrepresentations made to investors. The SEC specifically cited misstatements contained in responses to questions posed in due diligence questionnaires used to market the Quantek Fund to new investors. The SEC also singled out former QAM operations director Ralph Patino for misleading investors from 2006 to 2008 about managements’ investment in the Quantek Fund.
According to the settlement, $2.2 million in disgorgement and pre-judgment interest will be paid jointly by QAM and Guerra; $375,000 in penalties by QAM; $150,000 in penalties by Guerra, plus his five year bar from the securities industry; $300,000 payment by Bulltick Capital Markets Holdings, LP, the former parent of QAM; and a $50,000 penalty by Patino, in addition to his one year bar from the securities industry.
Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.