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Kornitzer Capital Management (KCM) Sanctioned by the SEC for Breach of Fiduciary Duty
Despite warnings by board members, CEO John Kornitzer and KCM left investors behind by ignoring their own funds’ policies and packing them with a single, high-risk asset. Instead of the 10% maximum specified by policy, KCM allowed four of its Collective Investment Trusts (CITs) to acquire concentrations from 30% to as much as 89% in Lions Gate Entertainment. When that stock dropped significantly, investors lost big.
If you are an investor who purchased a KCM product, contact us to find out if you have a case that could help you recover losses due to securities mismanagement.
How Does This Affect You?
The SEC sanction reveals that KCM was warned repeatedly, beginning as early as 2016 to correct the problem and bring concentrations into compliance. John Kornitzer promised the board he would, yet failed to act in any way until mid-to-late 2018. By then it was too late for investors. As a result of this conduct, the SEC has cited KCM for willful violations of Sect 206(4) of the Advisers Act and Rule 206(4)-7.
Contact us right away if you are a client of KCM and invested in any of these four funds affected by KCM’s mis-management:
- Retirement Equity Fund
- Common Equity Fund
- Common Fixed Fund
- Retirement Fixed Fund
You may have a case against KCM that could help you recover losses due to securities mismanagement and breach of fiduciary duty.