September 22, 2023

American Infrastructure Funds LLC (AIM) has agreed to pay $1.6 million in civil penalties, disgorgement, and prejudgment interest to settle charges of violating the antifraud and compliance provisions of the Advisers Act while acting as an investment advisor to private funds.  According to the SEC, AIM failed to disclose multiple conflicts of interest to its clients, including instances where it failed to consider whether a fee acceleration or a loan was in its clients’ best interests.  It also violated its fiduciary duties by transferring funds from one fund nearing the end of its term to a new fund without obtaining investor consent or providing investors with an exit, even though doing so would lock up investor funds for another decade.  SEC

Tagged in: Financial and Investment Fraud,