Robert Pinkas, Tab Keplinger and Brantley Capital Management (BCM) have been charged “with securities fraud for overvaluing assets in an investment portfolio they manage to generate higher investment advisory fees,” according to the Securities and Exchange Commission (SEC). The SEC alleges that BCM, Pinkas and Keplinger “substantially overstated the value of equity and debt investments in two failing private companies,” one of which was fractional-share operator Flight Options International (FOI), which “was consistently losing millions of dollars.” Pinkas, managing general partner of Brantley Partners, said the SEC’s conclusions are “baseless.” Keplinger elected to settle with the SEC and pay a $50,000 penalty. Brantley Partners is not financially involved with FOI.
SEC Charges BCM with Fraud
- August 25, 2009, 7:30 AM