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.