SEC charges advisory firm with breach of fiduciary duty and fraud
Newscast Media WASHINGTON—The Securities and Exchange Commission today
announced charges against a Morristown, N.J.-based investment advisory firm and its
owner for misleading investors in a collateralized debt obligation (CDO) and breaching
their fiduciary duties.
The SEC’s Enforcement Division alleges that Harding Advisory LLC and Wing F. Chau
compromised their independent judgment as collateral manager to a CDO named
Octans I CDO Ltd. in order to accommodate trades requested by a third-party hedge
fund firm whose interests were not necessarily aligned with the debt investors.
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