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Fund Times

Alpine Woods Settles IPO Case

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Alpine Woods Capital Investors, LLC and its chief executive officer, Samuel Lieber, reached a settlement with the Securities and Exchange Commission regarding trading of initial public offering shares in two of the firm's smallest funds. Alpine agreed to retain its compliance consultant (which the firm hired before the SEC investigation began) and pay a penalty of $650,000. Samuel Lieber will pay $65,000.

The SEC alleged that between Feb. 1, 2006, and Jan. 31, 2008, Alpine Dynamic Financial Services (ADFSX) and Alpine Dynamic Innovators (ADINX) took part in a disproportionate number of IPOs (relative to the firm's 11 other open-end funds) and quickly sold some or all of the shares within three days of purchase without disclosing to either the fund board or investors how these trades impacted performance. Further, the SEC alleged that Alpine's policies and procedures didn't prevent the disproportionate allocation of IPO shares, and that the firm's compliance program didn't have enough resources in place to monitor the activities. During the two-year period in question, the chief compliance officer also served as the chief operating officer, chief financial officer, and chief administrative officer.

Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.