Defendant Name: Medley Management Inc.

Defendant Type: Public Company
SIC Code: 6282
CUSIP: 58503T20

Initial Case Details

Legal Case Name In the Matter of Medley Management Inc., Brook B. Taube and Seth B. Taube
First Document Date 28-Apr-2022
Initial Filing Format Administrative Action
File Number 3-20836
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Rule 13a-15
• Sec 14(a)
• Rule 14a-9
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• Section 206(2), 206(4) Advisers Act; Rule 206(4)-8 Advisers Act
Additionally, Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 12b-20 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 13(a) of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-1 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-11 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-13 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-15 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 13a-15 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 14(a) of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 14(a) of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 14a-9 of the Exchange Act.
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Rule 14a-9 of the Exchange Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 17(a)(2) of the Securities Act (willfully/knowingly).
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 17(a)(2) of the Securities Act (willfully/knowingly).
Brook B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 17(a)(3) of the Securities Act (willfully/knowingly).
Seth B. Taube is alleged to have caused Medley Management Inc.'s violation of Sec 17(a)(3) of the Securities Act (willfully/knowingly).

Resolutions

First Resolution Date 28-Apr-2022
Headline Total Penalty and Disgorgement $4,000,000

Related Documents:

33-11057 28-Apr-2022 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, and Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On April 28, 2022, the SEC instituted administrative and cease-and-desist proceedings against Medley Management Inc., Brook B. Taube and Seth B. Taube stating: "This case involves misrepresentations to investors by Medley Management Inc. (“MDLY”), its affiliate Medley LLC (Medley LLC and, together with MDLY, “Medley”) and its co-CEOs, Brook Taube (“B. Taube”) and Seth Taube (“S. Taube” and, together with B. Taube, “the Taubes”). Since at least August 2016, Medley negligently overstated an important financial metric, its assets under management (“AUM”), creating a misleading appearance of likely future growth."
2022-73 28-Apr-2022 Press Release--Administrative Proceeding
Medley Management and Former Co-CEOs to Pay $10 Million Penalty for Misleading Investors and Clients

Other Defendants in Action:

Brook B. Taube
Seth B. Taube