What does our research say about Thomas Priore?

Fraudulent Activities: Thomas Priore and ICP Asset Management were accused by the SEC of engaging in fraudulent activities involving four collateralized debt obligations (CDOs). These activities included manipulating financial transactions without proper authorization and misleading investors about the investments.

Violation of Securities Laws: The SEC charged Priore and ICP with violating multiple federal securities laws, including Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. These violations included fabricating transactions and inflating asset values to collect excessive fees.

Misappropriation of Funds: Priore and ICP allegedly engaged in improper fund transfers from a hedge fund to cover obligations, violating fiduciary responsibilities. These unauthorized money transfers were carried out in secrecy to benefit ICP’s operations at the expense of clients.

Legal Disputes and Settlements: The SEC initiated legal action against Priore and ICP in 2010, followed by a revised lawsuit in 2011. The case involved substantial financial losses linked to the Triaxx Funds. Priore’s actions led to a complex legal battle, including counterclaims for fraudulent activity and breach of fiduciary duty.

Association with Collateralized Debt Scandals: Priore’s role in the CDO market collapse links him to the broader financial crisis. The SEC alleged that he structured deals that directly contributed to the losses suffered by investors, undermining market trust.