WASHINGTON — Federal regulators have filed civil fraud charges against an investment adviser and his firm in connection with complex securities tied to mortgages during the housing market bust.
The Securities and Exchange Commission on Monday accused Thomas Priore and ICP Asset Management of fraudulently managing the securities in a way that cost investors tens of millions of dollars. The SEC also says Priore and the New York firm improperly reaped millions in fees and undisclosed profits at the expense of clients.
The allegations involve four multibillion-dollar collateralized debt obligations.
Wall Street firms packaged and sold C-D-O’s tied to mortgages to investors at the height of the housing boom.