January 27, 2020

Catalyst Capital Advisors LLC and its CEO Jerry Szilagyi will pay more than $10 million — $8.9 million in disgorgement and 1.6 million in civil monetary penalties — to resolve claims that they failed to adequately supervise employees including the portfolio manager of Catalyst’s Hedged Futures Strategy Fund, Edward Walczak, who was separately charged.   Catalyst and Walczak made materially misleading statements about the risk management strategies employed by the fund, including false statements that stop-loss measures and risk monitoring were in place.  The misrepresentations led investors and investment advisors to believe that the fund was a safer investment than it actually was. CFTC, SEC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Misrepresentations, Securities Fraud,