Titan Global Capital Management USA LLC has been accused of misleading investors by the SEC. The company allegedly advertised a hypothetical performance of their services leading to annualized gains as high as 2,700%, which was based on performances recorded over three weeks. They also used improper hedge clauses, customer signatures without their consent, and misled investors regarding the custody of their assets.In response, Titan has cooperated with the SEC and accepted to pay a civil penalty of $850k, which will be distributed to affected clients, and $192,454 in disgorgement. A censure and a cease-and-desist order were also accepted.Osman Nawaz, the SEC’s Chief of Enforcement’s Complex Financial Instruments Unit, commented on the case, warning companies with similar strategies to take the lawsuit against Titan as a warning. He stated that investment advisers must ensure the accuracy of disclosures made to existing and prospective investors, and that the Commission amended the marketing rule to allow for the use of hypothetical performance metrics but only if advisers comply with requirements reasonably designed to prevent fraud.

Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	10
People	Osman Nawaz, Andreessen Horowitz
Currencies	None
Securities	None