Defendant Name:
Lone Star Value Management LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Digirad Corporation
SIC Code:
3845
CUSIP:
25382770
Document Reference:
IA-5448
Document Details
Legal Case Name
In the Matter of Lone Star Value Management LLC and Jeffrey Eberwein
Document Name
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
Document Date
24-Feb-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On February 24, 2020, the SEC instituted settled administrative and cease-and-desist proceedings against Lone Star Value LLC and Jeffrey Eberwein. The SEC stated: "In August 2014 and November 2014, Lone Star, while reporting to the Commission as an exempt reporting investment adviser, effected 19 interfund cross trades between two funds Lone Star managed, and, in June 2015, while registered with the Commission as an investment adviser, effected 2 trades between a fund Lone Star managed and a separately managed account (the "SMA") for which Lone Star served as an investment adviser. These 21 trades were made on a principal basis because Eberwein's ownership stake in the Lone Star fund involved in each of these trades was more than 35% during the relevant time period. Lone Star failed to disclose in writing that it engaged in these principal transactions and did not obtain client consent before the completion of each of the transactions as required under Section 206(3) of the Advisers Act. . . . Lone Star also failed to implement written policies and procedures reasonably designed to prevent violations of the Advisers Act and the rules thereunder, a violation of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Civil Penalty
Individual:
$100,000.00
Shared:
Other Defendants in Action:
