Compliance Solutions for Investment Advisers

Deferred Prosecution

The SEC entered into its first deferred prosecution agreement with an individual. The agreement was with Scott Herckis, former administrator to hedge fund Heppelwhite Fund LP. It recognizes his timely and significant contributions to the SEC’s efforts to halt an on-going fraud at his former hedge fund. At the same time, the five year agreement imposes many of the remedies the agency would have demanded in settlement.

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