The lack of jail time is why corruption is still so permanent in this industry . Do the crime..if caught fess up, settle.
Agreed, the SEC isn't likely going to forward the case to the U.S. Attorney for criminal prosecution. Other than permanently barring her from further securities violations, The SEC is asking for relief through monetary penalties. (See complaint at page 32 and 33).
"Order Defendants and the Relief Defendant to
disgorge all ill-gotten gains in the form of any benefits of any kind derived from the illegal conduct alleged in this Complaint, plus prejudgment
interest;
Order Defendants to
pay civil penalties, pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], and Section 209(e)of the Advisers Act [15 U.S.C. §80b-9(e)] in an amount to be determined by the Court."
It's almost certain that they will dip into the $10 million of assets from the Hope Charity Foundation to pay off the fines/penalties, since those funds were derived from the incentive fees, which the SEC is now labeling as "ill gotten gains." That doesn't mean she gives up
everything, only the amount of fees she collected from the onset of the "Scheme Trades" in 2014. Her funds started in 2008 and 2011, respectively, so it's likely she
already made her millions in performance based incentive fees.
