BlackRock Settles SEC Charges for Failing to Accurately Describe Investments in Aviron

By Ben Glickman

BlackRock Advisors, the investment advisory subsidiary of the private-equity firm, agreed to pay $2.5 million to settle charges by the Securities and Exchange Commission that the firm failed to accurately describe investments it made.

The SEC's order alleged that BlackRock made investments in Aviron Group, an entertainment print and advertising company, but described the company in filings as a "diversified financial services" company.

The SEC also alleged that BlackRock said Aviron paid a higher interest rate than was actually the case.

BlackRock found the errors in 2019 and correctly reported the investment in reports from then on, the SEC said.

The firm agreed to a cease-and-desist order and a censure without admitting or denying the charges, the agency said.

Last November, the SEC obtained a judgment against William Sadleir, the founder and owner of Aviron, for diverting and misappropriating BlackRock's investment in the company.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

October 24, 2023 17:25 ET (21:25 GMT)

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