Defendant Name: KCAP Financial, Inc.

Defendant Type: Public Company
SIC Code: 6726
CUSIP: 48668E10

Document Reference: 34-84718

Document Details

Legal Case Name In the Matter of KCAP Financial, Inc.
Document Name Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Section 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing a Cease-and-Desist Order
Document Date 04-Dec-2018
Document Format Administrative Proceeding
File Number 3-18912
AAER 3995
Allegation Type Issuer Reporting and Disclosure
Document Summary On December 4, 2018, the SEC issued an order against KCAP Financial, Inc., stating: "From at least 2010 through the third quarter of 2014 (the "relevant period") KCAP, a New York based company that elected to be regulated as a business development company ("BDC") under the Investment Company Act, received approximately $35.8 million from its wholly-owned Asset Manager Affiliates ("AMAs") and improperly recorded and distributed the entire amount as taxable dividends when, in fact, approximately $22.3 million (62.3%) of the funds received were actually return of capital."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order

Related Documents:

34-84718-s 04-Dec-2018 Administrative Summary
Business Development Company Admits Books, Records and Reporting Violations as Well as Internal Control Failures
The SEC stated: "KCAP Financial, Inc., a New York based business development company, has admitted that it failed to properly account for distributions it received from its wholly-owned Asset Manager Affiliates ("AMAs") by recording the entirety of those distributions as dividends when a majority of the funds received were in fact a return of capital."