Garrett Van Wagoner, president of Van Wagoner Capital Management, accepted a seven-year ban from serving as a mutual fund officer or director after he and the firm he founded agreed to pay an $800,000 penalty to settle charges with the Securities and Exchange Commission. The SEC charges the executive and his company misstated securities valuations in a number of funds.

Van Wagoner also accepted a seven-year restriction on activities that he can undertake with the investment advisor. The Commission found that the firm misled shareholders about the value and the size of the investments in illiquid securities in certain portfolios, exceeding the limits set forth in its disclosure documents for illiquid or private holdings. Van Wagoner and his company were also accused of misleading investors about the value of their shares, and thus, the market value of the funds. The firm neither admitted nor denied guilt in the settlement.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.