On February 5, 2020, the Securities and Exchange Commission entered into a Cease and Desist Order with CANNELL CAPITAL, LLC, a Wyoming registered Adviser advising $450mm of assets to private funds and high-net worth individuals. The order maintains that CANNELL from 2014 through October 2019, registered investment adviser CCL failed to establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of its business, to prevent the misuse of material nonpublic information. Specifically, CCL failed to follow its written policies and procedures by not maintaining a list of securities that members, officers, and employees (“Covered Persons”) and their family household members were prohibited from trading after the firm came into possession of potential material nonpublic information. Additionally, CCL’s written policies and procedures related to the handling of material nonpublic information were not reasonably designed to prevent misuse of material nonpublic information because they did not address any business-specific risks and lacked any guidance regarding when trading in securities should be restricted. As a result, CCL violated Section 204A of the Advisers Act.
IMDDA members have access to Convergence I-Risk portal which includes:
• Access to Convergence's library of historical SEC wrongdoing cases
• Free E-Risk Reports for any SEC action on the platform
• The ability to create and track, lists of Managers that you want to model
• A free Event Risk Match Score for any Manager you select
• Discounted pricing for Event Risk Match Score comparative reports.
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”).
The Investment Management Due Diligence Association (IMDDA), an exclusive investor-based organization dedicated to the professionals who perform investment and operational due diligence, today announced a new program giving its members access to background checks provided by Intelligo, a pioneer and leader in comprehensive, technology-driven background checks.
This new IMDDA member-only program provides access to Intelligo’s platform, Clarity, which leverages a combination of AI and human intellect to enhance the quality and depth of background checks. Intelligo Clarity far surpasses ponderous traditional background reports by vastly increasing sources reviewed, reducing report generation time, eliminating tedious paperwork with online SaaS reporting, and cutting error rates -- all provided with highly attractive economics.
“IMDDA is committed to helping members implement best practices throughout the due diligence process,” said Andrew Borowiec, Executive Director of the IMDDA. “Using Intelligo Clarity, IMDDA members around the globe can now save time and cut costs while at the same time boost background check quality and insights.”
According to Intelligo CEO Shlomo Mirvis: "We are driven by the vision of helping due diligence professionals gain full transparency before they enter and while involved in a deal. Our ultimate goal is to create a culture of trust, and we have built our technology to dive deep into the data and draw advanced connections so we can unearth every bit of information that can help your decision-making process and avoid unpleasant surprises."
Participating IMDDA members will now be able to draw upon Intelligo’s ground-breaking Clarity system features including: