Forepont Capital Llc

Allegations: FOREPONT FAILED TO TIMELY DISTRIBUTE ANNUAL AUDITED FINANCIAL STATEMENTS TO INVESTORS IN TWO PRIVATE FUNDS FOR FISCAL YEARS 2020 AND 2021, RESULTING IN VIOLATIONS OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-2 THEREUNDER. FOREPONT ENGAGED IN PRINCIPAL TRANSACTIONS WITH FOREPONT CAPITAL PARTNERS FUND 2, L.P ("CAYMAN FUND") BY TRANSFERRING POSITIONS HELD BY TWO OFFICER/CO-OWNERS AND A THIRD SENIOR ASSOCIATED PERSON TO THE CAYMAN FUND AT THE INDIVIDUALS' PURPORTED COST BASIS IN THOSE SECURITIES WITHOUT DISCLOSING TO THE CAYMAN FUND'S LIMITED PARTNERS IN WRITING PRIOR TO COMPLETION OF THE TRANSACTIONS THAT FOREPONT WAS ACTING AS PRINCIPAL AND WITHOUT OBTAINING THEIR CONSENT TO THE TRANSACTIONS, RESULTING IN VIOLATIONS OF SECTION 206(3) OF THE ADVISERS ACT. THE ORDER FURTHER FINDS THAT FOREPONT DID NOT PROVIDE ADVANCE WRITTEN DISCLOSURE OF ALL MATERIAL FACTS AND CONFLICTS OF INTEREST RELATED TO THE TRANSFERS, VIOLATING SECTION 206(2) OF THE ADVISERS ACT. FOREPONT FAILED TO ADOPT AND IMPLEMENT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT VIOLATIONS OF THE ADVISERS ACT AND THE RULES THEREUNDER, RESULTING IN A VIOLATION OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. Status: Final Sanction Detail: FOREPONT WAS CENSURED AND ORDERED TO PAY A CIVIL MONETARY PENALTY OF $150,000 Summary: ON SEPTEMBER [28], 2023, THE U.S. SECURITIES AND EXCHANGE COMMISSION ISSUED A SETTLED ADMINISTRATIVE CEASE-AND-DESIST ORDER (THE "ORDER") RELATED TO FOREPONT CAPITAL ("FOREPONT"). THE ORDER FINDS THAT FOREPONT FAILED TO TIMELY DISTRIBUTE ANNUAL AUDITED FINANCIAL STATEMENTS TO INVESTORS IN TWO PRIVATE FUNDS FOR FISCAL YEARS 2020 AND 2021, RESULTING IN VIOLATIONS OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-2 THEREUNDER. THE ORDER ALSO FINDS THAT FOREPONT ENGAGED IN PRINCIPAL TRANSACTIONS WITH FOREPONT CAPITAL PARTNERS FUND 2, L.P ("CAYMAN FUND") BY TRANSFERRING POSITIONS HELD BY TWO OFFICER/CO-OWNERS AND A THIRD SENIOR ASSOCIATED PERSON TO THE CAYMAN FUND AT THE INDIVIDUALS' PURPORTED COST BASIS IN THOSE SECURITIES WITHOUT DISCLOSING TO THE CAYMAN FUND'S LIMITED PARTNERS IN WRITING PRIOR TO COMPLETION OF THE TRANSACTIONS THAT FOREPONT WAS ACTING AS PRINCIPAL AND WITHOUT OBTAINING THEIR CONSENT TO THE TRANSACTIONS, RESULTING IN VIOLATIONS OF SECTION 206(3) OF THE ADVISERS ACT. THE ORDER FURTHER FINDS THAT FOREPONT DID NOT PROVIDE ADVANCE WRITTEN DISCLOSURE OF ALL MATERIAL FACTS AND CONFLICTS OF INTEREST RELATED TO THE TRANSFERS, VIOLATING SECTION 206(2) OF THE ADVISERS ACT. FINALLY, THE ORDER FINDS THAT FOREPONT FAILED TO ADOPT AND IMPLEMENT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT VIOLATIONS OF THE ADVISERS ACT AND THE RULES THEREUNDER, RESULTING IN A VIOLATION OF SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-7 THEREUNDER. THE ORDER REQUIRES FOREPONT TO PAY A $150,000 PENALTY.