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SEC Charges Fund Adviser with Failing to Provide 15(c) Materials to Board

The SEC has charged an investment manager and his firm for failing to provide a fund's Board with information reasonably necessary to conduct an evaluation of the fund's advisory contract as required by section 15(c) of the Investment Company Act of 1940.  David W. Dube and Peak Wealth Opportunities LLC advised a fund that invested in NASCAR-related stocks, the Stock Car Stock Index Fund, from 2008 to June 2010.  According to the SEC, during the annual advisory contract review process the fund's board requested information from Dube and Peak Wealth that was never produced. The board subsequently terminated Peak Wealth's advisory agreement and liquidated the fund by returning the money to investors. Chad Alan Earnst, an Assistant Regional Director in the SEC Enforcement Division's Asset Management Unit stated: "A fully-informed board is crucial to the advisory fee setting process, yet Dube failed to provide the board with the most basic of information."

The SEC also charged the manager and his firm for failing to cooperate with an SEC exam, failing to make and keep certain required financial records and failing to make certain regulatory filings.


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