On December 4, 2019, the Securities and Exchange Commission, (the “SEC” or “Commission”) filed a complaint against the defendants SBB Research Group, LLC (“SBB”), a registered investment adviser to several private investment funds (the “Funds”), Samuel Barnett (SBB’s owner and Chief Executive Officer (“CEO”) and Matthew Aven (SBB’s Chief Operations Officer (“COO”).
This case arises out of a multi-year fraudulent scheme perpetrated by the Defendants. Although Defendants executed their scheme in the back-office of SBB using a complex mathematical formula, the fraud at its core was simple. Barnett, Aven, and SBB intentionally rigged SBB’s valuation model to inflate the recorded value of the Funds’ securities and make the Funds’ performance look much better than it actually was. Using those manipulated values, Defendants reported inflated Net Asset Values (“NAVs”) to investors and created a false track record for the Funds which Defendants marketed to prospective investors. Then, after the SEC caught them at it, SBB, Barnett, and Aven hid their misconduct from investors.
Convergence’s free E-Risk Report contains insights into 9 high-risk business conditions identified in “SBB” that are likely to have set the table for the SEC’s complaint.
The free SSB report will be provided to anyone that inquires before December 11, 2019. Once the deadline has passed, only IMDDA members will be permitted to access the SSB report in the report library
IMDDA members can also use the link above to request access to Convergence I-Risk portal