October 14, 2015 Comments (0) Blog, Securities Fraud

Blackstone Group $39 Million Settlement

FINRA's BrokerCheck
(Last Updated On: January 31, 2017)

Investor Alert: Blackstone Group

According to reports, three fund advisors with The Blackstone Group have agreed to pay nearly $39 million to settle charges with the Securities and Exchange Commission (SEC). The advisors are accused of failing to fully inform investors about benefits they obtained.

According to a press release, “An SEC investigation found that Blackstone Management Partners, Blackstone Management Partners III, and Blackstone Management Partners IV failed to adequately disclose the acceleration of monitoring fees paid by fund-owned portfolio companies prior to the companies’ sale or initial public offering. ” As a result, the payments essentially reduced the value of portfolio companies prior to sale and in some cases the payments were used to offset management fees.

Although Blackstone disclosed its ability to collect monitoring fees, the SEC alleged they failed to disclose its practice of accelerated monitoring fees until after they received the fees.

In addition, Blackstone allegedly failed to disclose that they had negotiated a legal fee arrangement that provided greater discount for them than the funds it advised.

The foregoing information, which is publicly available here, is being provided by The White Law Group.

Recovery of Investment Losses

If you suffered losses investing with Blackstone Group and would like to speak to a securities attorney to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.