San Diego Investment Firm Faces Securities Fraud Charges
The Securities and Exchange Commission (SEC) has charged Western Pacific
Capital Management, LLC, and company president, Kevin James O’Rourke,
with fraud after an investigation. The charges allege that the company
misrepresented the liquidity of a
hedge fund, failed to disclose a
conflict of interest, and also had issues with registration.
According to the SEC, Western Pacific Capital Management and O'Rourke enticed investors with a certain investment, but failed to disclose that the company received a 10% commission from it. Additionally, clients did not receive written disclosures, and the company allegedly made omissions and misstatements to clients regarding a hedge fund the company managed.
One of the SEC's investigators said of the multiple issues that, "Investment advisers have a fiduciary duty to act in the best interests of their clients and be forthcoming with them. Western Pacific and O’Rourke fraudulently breached that duty by failing to disclose the commissions they would receive for the recommended investments and lying to clients about the liquidity of the fund they managed.”
The securities fraud attorneys with Meyer Wilson represent clients who have been harmed by stockbroker misconduct, breach of fiduciary duty, and investment fraud. We have recovered millions of dollars for clients across the nation, and we look forward to speaking with you.