{"id":8125,"date":"2019-05-17T15:28:13","date_gmt":"2019-05-17T19:28:13","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=8125"},"modified":"2019-05-17T15:28:13","modified_gmt":"2019-05-17T19:28:13","slug":"sec-sues-direct-lending-investments-for-inflated-charges-and-returns","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/sec-sues-direct-lending-investments-for-inflated-charges-and-returns\/","title":{"rendered":"SEC Sues Direct Lending Investments For Inflated Charges And Returns"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-1025 size-medium\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2017\/06\/iStock-521811810-300x202.jpg\" alt=\"Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles.A DLI employee notified the SEC that Direct Lending\u2019s founder, Brendan Ross, \u201cknowingly engaged in a multi-year scheme to mask the poor performance of one of the funds\u2019 largest investments,\u201d the SEC said in its lawsuit. Ross engineered loans that were valued \u201cat par,\u201d but should have been valued at zero. Ross also over-stated the company\u2019s valuation of one of its loans, to a company called Quarterspot, an online small-business lender.\" width=\"300\" height=\"202\" \/>Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles. <a href=\"https:\/\/www.silverlaw.com\/blog\/sec-sues-direct-lending-investments-for-inflated-charges-and-returns\/#more-8125\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699,583],"tags":[],"class_list":["post-8125","post","type-post","status-publish","format-standard","hentry","category-private-placement","category-sec-actions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Sues Direct Lending Investments For Inflated Charges And Returns &#8212; Securities Arbitration Lawyers Blog<\/title>\n<meta name=\"description\" content=\"Direct Lending Investments has been sued by the SEC with fraud charges relating to $11 million in management and performance fee overcharges.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/sec-sues-direct-lending-investments-for-inflated-charges-and-returns\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Sues Direct Lending Investments For Inflated Charges And Returns &#8212; 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