SEC Settlement
On March 1, 2011 the Securities and Exchange Commission (SEC) alleged that Goldfarb and his company illegally diverted $12 million from a hedge fund side pocket investment to other entities he controlled. On March 1, 2011, without admitting or denying allegations, Goldfarb settled with the SEC. On June 20, 2012, the Court found that the defendants were in breach of the Final Judgment by failing to pay the disgorgement amounts ordered. The Court also found that defendants had failed to establish a good faith effort to fulfil their disgorgement obligations because, among other things, they used available funds for large personal expenses such as courtside seats to Golden State Warriors games, charters of aircraft for personal trips, Goldfarb’s mortgage payment and numerous personal vacations, rather than to pay disgorgement.
Read more about this topic: Lawrence R. Goldfarb
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