SEC Charges American Infrastructure Funds LLC with Violating Fiduciary Duty

The Securities and Exchange Commission announced today that American Infrastructure Funds LLC (AIM) agreed to pay more than $1.6 million to settle charges of breaches of fiduciary duty and violations of the antifraud and compliance provisions of the Investment Advisers Act. The SEC's investigation found that AIM had accelerated fees paid by a portfolio company when it was sold without adequately disclosing their conflicts of interest, had improperly transferred assets from certain expiring funds to a new fund they also advised without investor consent or disclosing their conflicts of interest, and had failed to disclose their conflict of interest when they loaned money from one private fund to another affiliated fund. AIM agreed to a cease-and-desist order and censure and to pay a $1.2 million penalty as well as $445,460 in disgorgement and prejudgment interest to investors. The investigation was conducted by the Enforcement Division’s Asset Management Unit with assistance from the Division of Examinations' Private Funds Unit.