Van Wagoner Capital Management has disclosed in an SEC filing that the regulator is poised to start enforcement proceedings against it. At issue is Van Wagoner's alleged failure to properly value certain private holdings in its funds. According to the filing, it could face unspecified civil and administrative actions. Also facing possible actions are a firm employee, a director and two past directors.

Van Wagoner said in the filing that it opposes the SEC staff's recommendation of enforcement action.

At the heart of the issue is how Van Wagoner assigns values to securities that are not publicly traded. Back in 2001, The Wall Street Journal pointed out that the company had not lowered the valuation of many of the private shares it owned, even though the tech sector was in a swoon. Shareholder lawsuits ensued and are still working their way through the courts.

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