Defendant Name: KCAP Financial, Inc.

Defendant Type: Public Company

Document Reference: 34-84718-s

Document Details

Legal Case Name In the Matter of KCAP Financial, Inc.
Document Name Business Development Company Admits Books, Records and Reporting Violations as Well as Internal Control Failures
Document Date 04-Dec-2018
Document Format Administrative Proceeding
File Number 3-18912
Allegation Type Issuer Reporting and Disclosure
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order

Related Documents:

34-84718 04-Dec-2018 Administrative Proceeding
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
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."