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SEC Charges Former Executives of TCA Fund Management Group Corp.

On September 30, 2021, the SEC charged Robert D. Press, the former CEO, and Donna M. Silverman, the former Chief Portfolio Manager of TCA Fund Management Group, Corp.  for their alleged roles in the firm’s scheme to artificially inflate values and performance results of several of the firm’s funds.

According to the SEC investigation, Press allegedly recorded non-binding transactions and fraudulent investment banking fees in the fund’s books and records.  Subsequently, the inflated asset values and false performance results were included in promotional materials and account statements distributed to the TCA funds’ current and prospective investors, creating a false sense of having positive monthly returns.  In fact, the funds had at least 34 months of negative returns since inception.

According to the Director of the SEC’s Miami Regional Office “Press and TCA gave investors a false portrayal of the TCA Funds’ investment success, with Press profiting from this misinformation.”   Without admitting or denying the SEC’s findings, Press and Silverman each agreed to the entry of a cease-and-desist order.  In addition, Press agreed to be barred from the securities industry, and to pay disgorgement of overcharged management and performance fees he received of $4,409,546 plus interest and penalties.  Silverman agreed to a limitation on activities from acting in a director or officer capacity in the securities industry, and to pay a penalty of $50,000.

 

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