The SEC sanctioned Quattro Global Capital, LLC (Quattro), a New York registered investment adviser, for failing to file Forms 13F with the SEC between 2002 and mid-2005. Quattro agreed to settle the charges, without admitting or denying the SEC's findings, by agreeing to the issuance of a censure, a cease-and-desist order, and payment of a $100,000 civil penalty.
Section 13(f) of the Exchange Act requires institutional investment advisers who exercise investment discretion over at least $100 million of certain securities (Section 13(f) securities) to file a Form 13F quarterly with the SEC disclosing the Section 13(f) securities under management. The purpose of this disclosure requirement is to collect and disseminate to the public information about the holdings and investment activities of institutional money managers in order to assist investors, issuers and government regulators. Since 2001, Quattro's assets under management have exceeded the $100 million threshold in Section 13(f) securities, obligating Quattro to file a Form 13F each quarter beginning in 2002. However, Quattro, according to the SEC, failed to file any Forms 13F until July 2005, when the SEC's inspection staff began questioning Quattro about the absence of these filings.
Please click http://www.sec.gov/litigation/admin/2007/34-56252.pdf for a copy of the administrative order.