Execs Of Kohlberg Affiliate Settle SEC Asset-Value Case

Law360, New York (November 28, 2012, 2:02 PM EST) -- Three executives of a Kohlberg & Co. LLC offshoot have agreed to pay a total of $125,000 to settle a first-of-its-kind U.S. Securities and Exchange Commission suit alleging they vastly overstated troubled assets during the financial crisis, the agency said Wednesday.

The SEC filed and settled an administrative proceeding alleging executives from KCAP Financial Inc. overstated the fund’s investments in collateralized loan obligation funds by $21.9 million in the 2008 fiscal year. KCAP also overstated its debt securities by $30.6 million in 2008, the SEC said....
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