The Securities and Exchange Commission (SEC) settled charges against former Colorado resident Tomislav Vukota aka Tom Vukota (Vukota). The settlement included the two investment adviser entities he controls, Vukota Capital Management, LLC (VCM) and VCM Global Asset Management Ltd. (VGAM). The allegations were breaching their fiduciary duties and making material misrepresentations to private funds and investors.
Vukota operated the VCM entities out of its offices in Colorado Springs, Colorado. The SEC filed its suit against them in the U.S. District Court for the District of Colorado.
According to the SEC’s complaint, Vukota engaged in four alleged types of negligent misconduct. First, from at least 2017 through May 2022, Vukota and VCM caused advisors to make short-term loans to VCM at below-market rates to cover cash shortfalls at other private funds.
Second, the private funds’ partnership agreements prohibited such loans and this prohibition was not disclosed to investors.
Third, Vukota and VCM sent misleading letters to the investors in four private funds in connection with Vukota’s attempt to buy the investors’ interests. According to the complaint, the buyout letters failed to disclose Vukota’s conflicts of interest.
Fourth, the complaint alleges that from at least 2017 through 2023, Vukota and VGAM made material misstatements in marketing and offering materials for the Vukota Multi-Strategy Fund concerning the existence of an auditor, the amount of assets under management, the investment strategy, and the filing status as an exempt reporting adviser.
Jeffrey Pederson represents Colorado investment fraud victims and has done so successfully for over 20 years. Call to discuss this or other issues of investment fraud or mismanagement.
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