SEC Gets $12.4M Verdict, Injunction Against F-Squared Co-Founder

Investment adviser F-Squared’s co-founder, Howard B. Present, must pay the SEC over $12.4 million in disgorgement and fines for lying to investors about the performance of his firm’s investment product.

Present, who also was F-Squared Investments Inc.’s former CEO, must pay over $10.8 million in disgorgement and prejudgment interest, along with a fine of $1.575 million and an injunction, according to a March 20 U.S. District Court for the District of Massachusetts opinion. A jury found in favor of the Securities and Exchange Commission in October 2017.

F-Squared was previously the largest marketer of index products using exchange-traded funds ...