SEC Files Securities Fraud Charges Against San Francisco Investment Advisors

Thumbnail image for sec crest.bin.jpgToday, the San Francisco Regional Office of the Securities and Exchange Commission (SEC) levied securities fraud charges against local investment advisors responsible for managing the American Pegasus Auto Loan Fund, a $100 million hedge fund that invested in subprime automobile loans. The SEC found that American Pegasus LDG and American Pegasus Investment Management–together with CEO Benjamin P. Chui, former portfolio manager Triffany Mok and former general counsel Charles E. Hall, Jr.–engaged in improper self-dealing, conflicts of interest and misuse of funds. The respondents entered into a settlement with the SEC subject to the following sanctions: Benjamin Chui agreed to payment of a $175,000 fine and a 3-year bar from association with any investment advisory firm; Charles Hall agreed to payment of a $100,000 fine and a 3-year bar from association with any investment advisory firm; Triffany Mok agreed to payment of a $75,000 fine and a 1-year bar from association with any investment advisory firm; and the investment advisor firms agreed to forgive $850,000 in unpaid advisory fees owed to the firms by the fund.