Fund Manager to Pay $110 Million Total in SEC, DOJ Fraud Cases

A California mutual fund manager will pay a total of $110 million in disgorgement and interest in an SEC enforcement action, though $89 million of that sum is offset by a payment mandated in a parallel DOJ criminal case.

Ofer Abarbanel, who in 2023 was convicted and sentenced to four years in prison for defrauding investors, agreed to pay the additional $21 million to resolve the Securities and Exchange Commission’s case after receiving Judge Arun Subramanian’s nod in the US District Court for the Southern District of New York.

The fund manager pleaded guilty to investment adviser fraud in the ...