SEC file fraud charges against two investment managers

Pair is said to have reaped millions for recommending investment in a cohort’s funds

The Securities and Exchange Commission (SEC) has filed charges against two Florida-based investment advisers, accusing them of fraud and failure to inform clients about compensation they received for recommending certain offshore funds. According to the SEC, the investments were much riskier then consumers were led to believe. However, Gregory Adams and Larry Grossman continued to recommend the funds to obtain substantial rewards for themselves.

Adams and Grossman recommended that clients use Sovereign International Asset Management and invest exclusively in funds controlled by a manager named Nikolai Battoo. Battoo--who has been charged in a separate SEC enforcement action-- paid Adams and Grossman millions to drive the investment traffic to him.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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