SEC Fines Rialto $350K For Mischarging Its Own Funds
Law360 (August 7, 2020, 6:02 PM EDT) -- The U.S. Securities and Exchange Commission has fined private equity real estate firm Rialto Capital Management $350,000 for recouping costs and expenses from the wrong investment funds, according to a settlement Friday.
The firm charged Rialto Real Estate Fund, or Fund I, and Rialto Real Estate Fund II, or Fund II, $2.75 million and $250,000, respectively, for "third-party tasks" that actually should have been billed to the co-investment funds associated with each, according to the settlement.
"From 2012 through 2017, Rialto misallocated to Fund I and Fund II costs and expenses related to its performance of third party tasks that should...
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