YieldStreet Settles with SEC for Failing to Disclose Important Information to Investors.

The Securities and Exchange Commission (SEC) today announced that it has settled an action against New York-based YieldStreet Inc. and its registered investment adviser subsidiary, YieldStreet Management LLC, for failing to disclose critical information to investors in a $14.5 million asset-backed securities offering. According to the SEC's order, YieldStreet offered securities that were secured by a ship used for its deconstruction. However, prior to the offering, YieldStreet personnel had information indicating that the ships securing other loans made to the same borrowing group were reported as deconstructed or could not be located. Despite this, YieldStreet proceeded with the offering without disclosing this material information to investors. As a result, investors lost millions of dollars when the borrowing group caused the ship to be deconstructed without repaying the loan from YieldStreet. Without admitting or denying the findings, YieldStreet consented to the entry of an SEC order requiring the company to pay more than $1.9 million in penalties, disgorgement, and interest.