SEC Charges Samuel Masucci and Entities He Founded with Misleading ETF Trustees To Obtain Financing
The Securities and Exchange Commission (SEC) charged Samuel Masucci, founder of ETF Managers Group LLC (ETFMG) and Exchange Traded Managers Group LLC (parent company), with disadvantaging an exchange-traded fund (ETF) he managed, by accepting $20 million in financing without disclosing the terms to the trustees. To settle the charges, Masucci and his firms agreed to pay a combined $4.4 million without admitting or denying the SEC’s findings. The SEC accused Masucci and his companies of violating Sections 206(1) and 206(2) of the Investment Advisers Act and Section 17(d) of the Investment Company Act and Rule 17d-1 thereunder. As part of the settlement, Masucci was barred from associating with any Investment Adviser for three years and his companies had to pay a $400,000 penalty and $4 million in civil penalty.