6.16.2009 The SEC brought charges against Texas resident Michael J. Kiselak, a 42-year-old former NFL player and manager of Kiselak Capital Group, LLC. The SEC’s complaint alleged that Kiselak solicited approximately $24 million from 14 investors on behalf of Kiselak Capital Group by promising inflated returns and misrepresenting how the investor funds would be invested. The SEC also alleged that Kiselak failed to disclose to investors that Kiselak Capital Group took a 35% performance fee on all trading profits. Kiselak also told investors that the company made a 2.25% per month profit trading Treasury bills; instead Kiselak invested more than 95% of the investor funds in Gemstar. The SEC barred Kiselak from association with any broker, dealer or investment adviser.
Click www.sec.gov/litigation/admin/2009/34-60120.pdf to access the SEC’s administrative action.