SEC Charges an Investment Adviser to a Money Market Fund and One of its Employees with Deceiving the Fund’s Board and Causing the Fund to Violate Rule 2a-7
December 01, 2013
On November 26, 2013, the U.S. Securities and Exchange Commission (“SEC”) instituted public administrative and cease-and-desist proceedings against Ambassador Capital Management, LLC (“ACM”) and one of its employees who served as the primary portfolio manager of the Ambassador Money Market Fund (“Fund”).1 The SEC alleges that ACM and the portfolio manager (i) deceived the Fund’s board of trustees (“Board”) and (ii) caused the Fund to violate Rule 2a-7 under the Investment Company Act of 1940, as amended (the “1940 Act”), the rule governing money market fund investments and operations.
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