MICG and Martinovich organized, controlled and managed the hedge fund.
FINRA in its investigation found that MICG and Martinovich improperly assigned excessive asset values to two non-public securities owned by Venture Strategies, and used the excessive asset values as the basis for paying unjustified management and incentive performance fees.
Martinovich also fraudulently induced an elderly, non-accredited MICG customer to invest $75,000 in Venture Strategies.
FINRA executive vice president and chief of enforcement Brad Bennett said MICG and Martinovich used the proprietary hedge fund to unjustly enrich themselves. This extreme abuse of trust, and their disregard for the interests of public investors, demonstrated their unfitness for participation in the industry.
