Florida business lender accused of accounting fraud settles with SEC

BOSTON (Reuters) – Miami-area direct lending agency TCA Fund Management Group Corp and its associates reached a settlement with U.S. securities regulators over allegations of fraudulent income recognition that inflated the worth of its personal funds, based on a judgment on Wednesday entered in Miami federal court docket.

The TCA entities, together with its flagship TCA Global Credit Fund GP Ltd, consented to a everlasting injunction on further violations of securities legislation and the appointment of a receiver, with out admitting or denying the allegations. TCA may additionally pay the disgorgement of ill-gotten features and civil penalties, based on the decide’s order.

TCA, which lent cash at excessive rates of interest to small companies, allegedly inflated the online asset worth of its personal funds by no less than $130 million as of November 2019, when property have been reported to be $516 million total, based on the Securities and Exchange Commission’s (SEC) criticism on Monday.

TCA founder Robert “Bob” Press and Carl Schoeppl, an lawyer for TCA, didn’t instantly reply to a request for remark.

On Tuesday, the SEC introduced it has obtained the appointment of a receiver, Miami lawyer Jonathan E. Perlman, who will oversee the wind down of TCA’s funds for about 470 traders.

The SEC additionally mentioned on Tuesday that the investigation associated to TCA was ongoing.

Reporting by Lawrence Delevingne; Editing by Bill Berkrot


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