SEC names co-head of unit that investigates private funds

  • SEC names O’Riordan co-chief of asset-management unit
  • O’Riordan succeeds Marshall Sprung, who left in April
  • Sprung is global head of compliance at Blackstone

The Securities and Exchange Commission named C. Dabney O’Riordan to co-head the Division of Enforcement’s asset-management unit.

She succeeds Marshall Sprung, who departed in April. O’Riordan, along with Anthony Kelly, will lead the SEC unit that investigates violations by private funds and investment advisers, a June 28 statement said.

O’Riordan is an associate regional director in the SEC’s Los Angeles regional office. She joined the asset-management unit at its inception in 2010. Since then, she has investigated or supervised a number of enforcement cases that addressed misconduct across the industry.

These include charges against Scott A. Brittenham and Clean Energy Capital LLC, which allegedly used assets from 19 private equity funds to improperly pay more than $3 million of the firm’s expenses.

O’Riordan also supervised investigations against gatekeepers, including an auditor to a private fund and an accounting firm hired to conduct custody examinations.

Sprung, who was co-chief of the asset-management unit, joined Blackstone Group, where he is a managing director and global head of compliance, according to Sprung’s biography on the firm’s website.

Under Sprung, the SEC’s asset management unit within the enforcement division brought actions against firms including KKR, which paid in June 2015 nearly $30 million for misallocating more than $17 million in so-called broken-deal expenses.

Fenway Partners and several of its executives in November agreed to pay a combined $10.2 million to investors harmed by its failure to disclose payments to an affiliated consulting firm, Buyouts reported.

And in October, Blackstone agreed to pay nearly $39 million to settle a case that involved improper disclosure of accelerated monitoring fees.

Action Item: To contact the SEC, call 800-SEC-0330

The U.S. Securities and Exchange Commission logo adorns an office door at headquarters in Washington on June 24, 2011. Photo courtesy Reuters/Jonathan Ernst