ICP Asset Management and its founding President, Thomas C. Priore, have reached a settlement agreement with the Securities and Exchange Commission (SEC) for charges alleging that ICP defrauded numerous collateralized debt obligations (CDO) they managed. The SEC argued that ICP and Mr. Priore engaged in fraudulent practices and misrepresentations that cause the CDOs to overpay for securities, which caused losses of millions of dollars. Also, ICP and Mr. Priore obtained fees and undisclosed profits at the expense of the CDOs and their investors. ICP, Priore, and ICP related companies have agreed to pay $23 million to settle the case, which was filed against them in June 2010.
CDOs are a type of structured asset-backed securities with multiple risk "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. With the real estate market collapse in 2008, many of these investments plummeted and investors lost billions.
The judgment orders ICP and its holding company, Institutional Credit Partners LLC, to pay disgorgement of $13,916,005.00 and prejudgment interest of $3,709,028. ICP must also pay a penalty of $650,000.00. ICP Securities LLC, an affiliated broker-dealer, is ordered to pay disgorgement of $1,637,581.00, prejudgment interest of $301,893, and penalty of $1,939,474.00. Mr. Priore will pay disgorgement of $797,337.00, prejudgment interest of $215,045.00, and a penalty of $487,618.00. Mr. Priore has also agreed to settle an administrative proceeding against him and be barred from any association with an investment adviser, broker, dealer, transfer agent, and from participating in any penny stock offerings. He is eligible to re-apply for association after a five-year period.
Did you suffer losses resulting from ICP Asset Management's fraudulent practices? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.