SEC settles with Greenwood Village investment manager over questionable expenses

Greenwood Village funding supervisor and former lawyer Hendrik Jordaan has settled allegations that he inappropriately charged enterprise and private bills to 2 funding funds backed by a few of Denver’s wealthiest households, in accordance with a information launch from the U.S. Securities & Trade Fee on Friday.

Jordaan, a local of South Africa and former accomplice within the regulation agency Morrison Foerster, raised cash for after which managed the One Thousand & One Voices Fund, which invested in sub-Saharan Africa, and the Households Legacy Fund, which invested in North America.

Jordaan operated and owned the 2 administration corporations investing the cash within the two funds, which got here primarily from rich households. The SEC alleges that from 2019 to 2022, Jordaan inappropriately charged the 2 funding funds for enterprise bills that, per the governing paperwork, had been the duty of his two administration companies, or that represented private bills.

Questionable bills included about $1.3 million for outsourced monetary companies, $214,000 for public relations companies, and about $70,000 in authorized charges to learn the administration corporations, the SEC stated in its administrative order. The One Thousand & One Voices Fund was charged $2.4 million and the Household Legacy Fund charged $160,000 for objects with generic descriptions and missing correct supporting documentation, the SEC stated.

Jordaan took professional enterprise journeys, but additionally journeys along with his household the place bills had been positioned on the administration firm card after which billed to the funding funds, the SEC stated.

“Jordaan charged nearly all of his residing and enterprise bills on to One Thousand & One Voices Supervisor-issued company bank cards. He additionally offered One Thousand & One Voices Supervisor-issued company bank cards to his relations,” the SEC stated in its criticism.

In figuring out penalties and repayments as a result of funds, the SEC offset what it thought of unauthorized bills, plus curiosity, in opposition to what the funds owed the administration corporations. They roughly balanced one another.

Jordaan and his corporations agreed to pay a civil cash penalty of $250,000 to the SEC with out admitting or denying any wrongdoing.

“I’m happy to wrap up this matter, notably as there was no allegation of intentional misconduct, the SEC didn’t allege any internet overpayment of funds, and there’s no limitation to me persevering with to function within the securities business uninterrupted,” Jordaan stated in a press release issued via his lawyer.