MDLY - Medley Management and former co-CEOs to pay $10M it settle SEC charges

Medley Management (NYSE:MDLY) and its former co-CEOs, Brook B. Taube and Seth B. Taube, will collectively pay $10M in civil penalties to settle charges from the Securities and Exchange Commission that they made misrepresentations to investors and clients about its likely future growth. The SEC alleges that since at least August 2016, in multiple public filings, including bond offering materials, Medley (MDLY) overstated its assets under management by including "committed capital" amounts from non-discretionary clients, whose agreements with the company imposed no obligation to invest with MDLY and whose investing activity through the company was minimal. "The Taubes and Medley did not disclose that there was a risk that a significant amount of the clients’ capital would never be invested and would therefore never generate the fee income on which Medley’s financial growth depended," the SEC said. Medley LLC filed for Chapter 11 bankruptcy proceedings on July 6, 2021 and

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Medley Management and former co-CEOs to pay $10M it settle SEC charges