WASHINGTON (AP) — An investment adviser and his firm and affiliates will pay $23.5 million to settle civil fraud charges brought by federal regulators in one of the earliest cases related to the financial crisis.
The Securities and Exchange Commission announced the settlement Friday with Thomas Priore and ICP Asset Management, and two affiliated firms. The SEC accused Priore and the firms in June 2010 of misleading investors in the sale of complex, multibillion-dollar mortgage securities. The investors lost tens of millions of dollars while Priore and the firms reaped millions in fees and undisclosed profits, the SEC said.
Wall Street banks sold the securities at the height of the housing boom. Goldman Sachs agreed to pay $550 million in July 2010 to settle similar charges with the SEC.