SEC Charges Corvex Management For Failing to Disclose Conflicts of Interest

Posted on April 21st, 2023 at 1:14 PM
SEC Charges Corvex Management For Failing to Disclose Conflicts of Interest

From the desk of Jim Eccleston at Eccleston Law 

The Securities and Exchange Commission (SEC) has charged Corvex Management for failing to disclose conflicts of interest related to its personnel’s ownership of sponsors of special purpose acquisition companies (SPACs).

In 2020 and 2021, Corvex personnel former three SPACs and shared ownership of the SPACs’ sponsors, according to the SEC. Corvex personnel were entitled to a portion of the compensation the sponsors generated upon completion of the SPACs’ business combinations.

The SEC determined that Corvex regularly invested client funds into the SPACs’ business combinations without disclosing the conflicts. Corvex agreed to pay a $1 million civil penalty to settle the charges, but the New York-based investment advisor did not admit or deny any of the SEC’s investigatory findings.

 

Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

September 26, 2025
SEC and DOJ Target $770 Million Prestige Funds Ponzi Scheme

Federal regulators say thousands of investors may have lost money in what they allege was a massive Ponzi scheme tied to the Prestige Funds and WF Velocity Funds.

September 25, 2025
FINRA Suspends Spartan Capital Broker for Excessive Trading Violations

The Financial Industry Regulatory Authority (FINRA) has suspended Joseph Kelly, a broker at Spartan Capital Securities, for nine months and ordered him to pay a $10,000 fine and $69,830 in restitution.

September 24, 2025
How New CCOs Can Navigate Today's Compliance Challenges

The role of the chief compliance officer (CCO) has never carried more weight or more complexity, according to Wealth Management.