Have a Claim?

Click here for a confidential contact or call:

1-347-417-2192

March 4, 2022

Posted  March 4, 2022

Venture capital fund adviser Alumni Ventures Group, LLC and its CEO Michael Collins have agreed to pay civil penalties totaling $800,000, and have returned $4.8 million to affected funds to resolve claims that they made misleading representations about AVG’s fees, and made inter-fund loans and transfers in violation of the funds’ respective operating agreements.  The SEC alleged that while AVG told customers that its management fee was the “industry standard ‘2 and 20.,” its practice was different from the industry standard in that it assessed the entire 20 percent in management fees – that is, 10 years’ worth of management fees of two percent per annum – upfront at the time an investor made the capital contribution.  SEC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Misrepresentations,