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

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