Defendant Name: Paramount Group Real Estate Advisor LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Paramount Group, Inc.
SIC Code: 6798
CUSIP: 69924R10

Initial Case Details

Legal Case Name In the Matter of Paramount Group Real Estate Advisor LLC
First Document Date 06-Jul-2017
Initial Filing Format Administrative Action
File Number 3-18060
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-8 Adviser Act

Resolutions

First Resolution Date 06-Jul-2017

Related Documents:

IA-4726-s 06-Jul-2017 Administrative Summary
Private Equity Real Estate Fund Adviser Settles with SEC for Acting Contrary to Client's Consent in Conflicted Transaction
The Commission stated: "Paramount Group Real Estate Advisor LLC (Paramount), a New York-based private equity fund adviser registered with the Commission, has settled negligence-based fraud charges stemming from a transaction in which it owed a fiduciary duty to both sides and breached that duty to one side. Specifically, in the transaction, Paramount failed to cause one fund to reimburse the other fund for certain previously incurred expenses totaling $4.5 million despite Paramount's commitment that a reimbursement would take place."
IA-4726 06-Jul-2017 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On July 6, 2017, the SEC issued an order, stating: "This matter concerns Paramount Group Real Estate Advisors LLC's conduct with respect to a transaction between two private funds it advised. In March 2014, Respondent, a registered investment adviser, caused Paramount Group Real Estate Fund III, L.P. ("Fund III") to sell one of its investments in real property, a parking garage, to Paramount Group Residential Development Fund, L.P. ("RDF"). In connection with the transaction, Respondent failed to cause RDF to reimburse Fund III for certain development expenses Fund III had incurred before the sale, despite Respondent's commitment to Fund III's investor advisory committee ("Fund III IAC") at the time the Fund III IAC approved the sale that the reimbursement would be made."