SEC fines venture capitalist and two other execs for allegedly siphoning client funds
The Securities and Exchange Commission settled charges Wednesday with G. Steven Burrill, and his firm Burrill Capital Management, for allegedly siphoning money from a fund managed by the firm in order to prop up his other struggling businesses and finance a lavish lifestyle. The SEC investigation found Burrill concealed his theft from investors by calling the misappropriation "advanced" management fees and spent it on family vacations as well as jewelry, gifts, car service, and private jets. Burrill and his firm will pay back $4.785 million to investors plus pay a $1 million penalty. Burrill also agreed to be permanently barred from the securities industry. Burrill Capital Management's chief legal officer Victor A. Hebert and controller Helena C. Sen also settled charges they enabled the scheme and paid penalties of $185,000 and $90,000, respectively. They also are barred from the securities industry. Burrill, his firm, Hebert, and Sen agreed to the settlements without admitting or denying the findings. Burrill, a former audit partner, and Sen are also permanently suspended from appearing and practicing before the SEC as accountants. Hebert is permanently suspended from appearing and practicing before the SEC as an attorney.