BlackRock Settles SEC Charges for Failing to Accurately Describe Investments in Aviron
October 24 2023 - 5:40PM
Dow Jones News
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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