QED Benchmark Management Agrees to Reimburse Investor Losses

Posted on February 18th, 2016 at 12:37 PM
QED Benchmark Management Agrees to Reimburse Investor Losses

From the Desk of Jim Eccleston at Eccleston Law LLC:

On January 28th the Securities and Exchange Commission announced that a Manhattan based investment advisory firm, along with its Toronto based hedge fund manager, has settled charges involving the issuance of misleading information to investors regarding strategy and past performance. The firm has agreed to reimburse investors over $2.8 million in losses.

According to SEC administrative proceedings, QED Benchmark Management LLC and its founder/fund manager Peter Kuperman avoided disclosing past trading losses to investors. The two did so by mixing hypothetical and actual returns when providing the fund’s performance history. After garnering millions of dollars from investors based on these misrepresentations, the firm and Kuperman deviated from their previously stated investment strategy and placed much of the fund’s assets into a single penny stock.

Andrew M. Calamari, who is currently Director of the SEC’s New York Regional Office, issued a statement regarding the matter. Calamari stated that “Investment advisors must be completely candid when disclosing two key features that investors rely upon when making investment decisions: investment strategy and historical performance.” In certain instances QED Benchmark misled investors on both accounts, and consequently the firm will pay these individuals back in full.

Officially, the SEC has found both Kuperman and QED Benchmark Management to be in violation of the Securities Exchange Act of 1934, the Investment Advisors Act of 1940, and antifraud provisions of the Securities Act of 1993. In addition to the firm’s investor reimbursement agreement, Kuperman must pay a $75,000 penalty and will be barred from the securities industry. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, SEC, QED Benchmark Management, investors, Hedge Fund

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.