Washington, DC (STL.News) The U.S. Securities and Exchange Commission filed an Administrative Proceeding (File No. 3-20709) against Anthony M. Cottone, Respondent, Order Instituting Administrative Proceedings pursuant to Section 15(b) of The Securities Exchange Act of 1934 and Section 203(f) of The Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions.
Cottone, 47 years old, is a resident of Delray Beach, Florida. Cottone was the managing member of a now-defunct unregistered investment adviser, which managed a private equity fund and he also acted as an unregistered broker soliciting investments in the private fund and receiving commissions based on the amount of funds invested. The complaint alleges that from March 23, 2017, to July 31, 2017, Cottone and his investment adviser raised an estimated $2.76 million from 11 investors in connection with the sale of preferred interests in a private fund through false and misleading representations and material omissions regarding the fund’s use of investor proceeds, undisclosed conflicts of interest, and Cottone’s background. The complaint alleges that Cottone misused and misappropriated the fund’s assets. Additionally, the complaint alleges that Cottone sold securities in unregistered transactions and acted as an unregistered broker.