SEC Suit Against Investment Adviser Not Covered, Insurers Say

A US Securities and Exchange Commission lawsuit against Arete Wealth Inc. related to the firm’s alleged connection to a fraudulent investment scheme isn’t covered under the investment adviser’s directors and officers insurance policies, its carriers said in a lawsuit.

The SEC suit isn’t covered because it was filed after the policy period ended, the insurers backing Arete’s policies said in a complaint filed Friday in the US District Court for the Northern District of Illinois.

• The Lloyd’s of London underwriters—a Markel Group Inc. unit and Lloyd’s syndicate—issued management liability policies that covered Arete from November 2020 to November 2024
• An ...