SEC Fines Texas Man $10K For Talking Up Penniless Funds

Law360 (March 27, 2020, 3:08 PM EDT) -- The U.S. Securities and Exchange Commission filed and settled a civil complaint Thursday against a Texas man for allegedly lying to potential investors about two investment funds that never actually raised or invested any money.

The agency claims Adam Matthew Root sought out investors for two funds that he purported to manage through his company Tricent Capital LLC and told them a slew of lies, including that Tricent had already invested capital into multiple startups and its funds already had seven-figure commitments from other investors.

“[Root’s] communications fail to disclose, however, that, as defendant knew, the purported ‘commitments’ were verbal commitments...

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