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Kevin James O'Rourke and his firm, Del Mar's Western Pacific Capital Management, were sanctioned by the Securities and Exchange Commission (SEC) yesterday (Sept. 19). O'Rourke raised $4.8 million for a San Diego software firm, Ameranth, and took 10% in success fees without informing the buyers of the arrangement, says the SEC. O'Rourke induced clients to invest in a hedge fund, the Lighthouse Fund, without disclosing that the fund would initially invest primarily in Ameranth, for which Western Pacific would get its 10% fee. "O'Rourke misused fund assets and lied to his clients who invested in the fund," says the SEC. The securities agency hit O'Rourke with a cease and desist order and $130,000 fine. O'Rourke must disgorge $482,745 plus prejudgment interest to the U.S. Treasury.
Kevin James O'Rourke and his firm, Del Mar's Western Pacific Capital Management, were sanctioned by the Securities and Exchange Commission (SEC) yesterday (Sept. 19). O'Rourke raised $4.8 million for a San Diego software firm, Ameranth, and took 10% in success fees without informing the buyers of the arrangement, says the SEC. O'Rourke induced clients to invest in a hedge fund, the Lighthouse Fund, without disclosing that the fund would initially invest primarily in Ameranth, for which Western Pacific would get its 10% fee. "O'Rourke misused fund assets and lied to his clients who invested in the fund," says the SEC. The securities agency hit O'Rourke with a cease and desist order and $130,000 fine. O'Rourke must disgorge $482,745 plus prejudgment interest to the U.S. Treasury.