Aladdin, Ex-CFO Settle SEC Actions Over Co-Investing Claims

Law360, New York (December 17, 2012, 10:03 PM EST) -- Aladdin Capital Management LLC, its broker-dealer unit and its former chief financial officer agreed Monday to pay more than $1.6 million to settle the U.S. Securities and Exchange Commission's allegations that the firm lied to clients about co-investing in collateralized debt obligations.

Aladdin Capital Management and Aladdin Capital LLC will pay the SEC $900,000 in disgorgement, a civil penalty of $450,000 and $269,000 in interest, according to the SEC.

Joseph A. Schlim, an ex-CFO of both Aladdin Capital and Aladdin Management, will pay a $50,000 civil...
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