Black Dragon Capital Investment Management, Llc

Allegations: ON SEPTEMBER 3, 2024, BLACK DRAGON CAPITAL, LLC, BLACK DRAGON CAPITAL INVESTMENT MANAGEMENT (COLLECTIVELY, "BLACK DRAGON"), AND LOUIS HERNANDEZ, JR. REACHED A SETTLEMENT AGREEMENT WITH THE STAFF OF THE DIVISION OF ENFORCEMENT OF THE US SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION'). THE COMMISSION'S COMPLAINT ALLEGES THAT FROM AT LEAST DECEMBER 2021 TO MARCH 2024, BLACK DRAGON AND MR. HERNANDEZ IMPROPERLY FAILED TO REGISTER AS INVESTMENT ADVISERS WITH THE COMMISSION. THE COMPLAINT FURTHER ALLEGES THAT BLACK DRAGON AND MR. HERNANDEZ VIOLATED THE COMMISSION'S MARKETING RULE THROUGH THEIR USE OF CERTAIN PERFORMANCE DATA ON THEIR WEBSITE, PROVIDED MISLEADING PERFORMANCE INFORMATION IN BLACK DRAGON'S MARKETING MATERIALS, AND FAILED TO MAINTAIN CERTAIN BOOKS AND RECORDS, AMONG OTHER VIOLATIONS. THE COMMISSION'S COMPLAINT, PLED IN U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, CHARGES BLACK DRAGON AND MR. HERNANDEZ WITH VIOLATING SECTION 203(A), 204, AND 206(4) OF THE ADVISERS ACT AND RULES 204(B)-1(A), 206(4)-1(A)(6), AND 206(4)-8, THEREUNDER. THE COMPLAINT ALSO ALLEGES BLACK DRAGON VIOLATED SECTIONS 204(A), 204A, AND 206(4) OF THE ADVISERS ACT AND RULES 204-2(A)(16), 204A-1, AND 206(4)-7, THEREUNDER, AND THAT BLACK DRAGON AND MR. HERNANDEZ VIOLATED SECTION 206(4) OF THE ADVISERS ACT AND RULE 206(4)-8, THEREUNDER. Status: Final Summary: ON SEPTEMBER 3, 2024, BLACK DRAGON AND LOUIS HERNANDEZ, JR. REACHED A SETTLEMENT AGREEMENT WITH THE STAFF OF THE DIVISION OF ENFORCEMENT OF THE COMMISSION. BLACK DRAGON AND MR. HERNANDEZ HAVE CONSENTED, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS AND SUBJECT TO COURT APPROVAL, TO BE PERMANENTLY ENJOINED FROM VIOLATING THE CHARGED PROVISIONS OF THE FEDERAL SECURITIES LAWS (I.E. SECTION 203(A), 204, 204(A), 204A, AND 206(4) OF THE ADVISERS ACT AND RULES 204(B)-1(A), 206(4)-1(A)(6), 204-2(A)(16), 204A-1, 206(4)-7, AND 206(4)-8, THEREUNDER) AND HAVE AGREED TO PAY CIVIL PENALTIES.

Allegations: ON SEPTEMBER 25, 2024, A FINAL JUDGMENT WAS ENTERED BY CONSENT AGAINST BLACK DRAGON CAPITAL, LLC AND BLACK DRAGON CAPITAL INVESTMENT MANAGEMENT (COLLECTIVELY, "BLACK DRAGON CAPITAL"), PERMANENTLY ENJOINING THEM FROM FUTURE VIOLATIONS OF SECTION 203(A) OF THE ADVISERS ACT, SECTION 204 OF THE ADVISERS ACT AND RULES 204(B)-1(A) AND 204-2(A)(16) THEREUNDER, SECTION 204A OF THE ADVISERS ACT AND RULE 204A-1 THEREUNDER, AND SECTION 206(4) OF THE ADVISERS ACT AND RULES 206(4)-1(A)(6), 206(4)-7, AND 206(4)-8 THEREUNDER. THE COMMISSION'S COMPLAINT ALLEGED THAT BLACK DRAGON CAPITAL FAILED TO REGISTER AS INVESTMENT ADVISERS UNTIL APRIL 2024, FAILED TO FILE A REPORT ON THE COMMISSION'S FORM PF, VIOLATED THE COMMISSION'S MARKETING RULE THROUGH THEIR USE OF CERTAIN PERFORMANCE DATA ON THEIR WEBSITE, AND INCLUDED AN UNSUPPORTED PERFORMANCE FIGURE ON THEIR WEBSITE. THE COMMISSION'S COMPLAINT FURTHER ALLEGED THAT BLACK DRAGON CAPITAL INVESTMENT MANAGEMENT INCLUDED MISLEADING PERFORMANCE DATA IN MARKETING MATERIALS. THE COMMISSION'S COMPLAINT ALSO ALLEGED THAT BLACK DRAGON CAPITAL FAILED TO MAINTAIN CERTAIN BOOKS AND RECORDS REGARDING PERFORMANCE DATA. FINALLY, THE COMMISSION'S COMPLAINT ALLEGED BLACK DRAGON CAPITAL FAILED TO ENFORCE THEIR CODE OF ETHICS, AND VIOLATED THE COMMISSION'S COMPLIANCE RULE BY FAILING TO ENFORCE THEIR COMPLIANCE POLICIES AND PROCEDURES, AND FAILING TO CONDUCT AND DOCUMENT, IN WRITING, AN ANNUAL COMPLIANCE REVIEW. BLACK DRAGON CAPITAL HAS CONSENTED, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS, TO THE ENTRY OF THE ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 203(E) OF THE INVESTMENT ADVISERS ACT OF 1940. BLACK DRAGON CAPITAL TAKE THE ALLEGATIONS VERY SERIOUSLY, AND HAVE ALREADY TAKEN CONCRETE STEPS TO REMEDIATE ANY MISTAKES THAT HAVE BEEN MADE. Status: Final Sanction Detail: BLACK DRAGON CAPITAL HAS CONSENTED, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS, TO THE ENTRY OF THE ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 203(E) OF THE INVESTMENT ADVISERS ACT OF 1940. Summary: ON SEPTEMBER 25, 2024, A FINAL JUDGMENT WAS ENTERED BY CONSENT AGAINST BLACK DRAGON CAPITAL, LLC AND BLACK DRAGON CAPITAL INVESTMENT MANAGEMENT (COLLECTIVELY, "BLACK DRAGON CAPITAL"), PERMANENTLY ENJOINING THEM FROM FUTURE VIOLATIONS OF SECTION 203(A) OF THE ADVISERS ACT, SECTION 204 OF THE ADVISERS ACT AND RULES 204(B)-1(A) AND 204-2(A)(16) THEREUNDER, SECTION 204A OF THE ADVISERS ACT AND RULE 204A-1 THEREUNDER, AND SECTION 206(4) OF THE ADVISERS ACT AND RULES 206(4)-1(A)(6), 206(4)-7, AND 206(4)-8 THEREUNDER.