In S.E.C.’s Streamlined Court, Penalty Exerts a Lasting Grip

On its face, it seemed like a simple case. Eric D. Wanger, according to regulators, had done things a money manager shouldn’t do.

Over nearly three years, they said, Mr. Wanger made 15 improper trades for a fund he oversaw at his Chicago firm, Wanger Investment Management. The trades, in a handful of small, illiquid stocks, were said to have inflated the fund’s performance and generated extra fees for Mr. Wanger.

The supposedly ill-gotten gains were computed to be less than $2,270. The cost to Mr. Wanger has been much higher. He had to close both his investment management firm and a family office that advised dozens of clients, with $300 million in assets, a company he had borrowed against his home to set up. Nearly five years later, he is still barred from the business.

Read more of this The New York Times article by Gretchen Morgenson by clicking here.

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