BOSTON (Reuters) – Miami-area direct lending firm TCA Fund Management Group Corp and its affiliates reached a settlement with U.S. securities regulators over allegations of fraudulent revenue recognition that inflated the value of its private funds, according to a judgment on Wednesday entered in Miami federal court.
The TCA entities, including its flagship TCA Global Credit Fund GP Ltd, consented to a permanent injunction on additional violations of securities law and the appointment of a receiver, without admitting or denying the allegations. TCA may also pay the disgorgement of ill-gotten gains and civil penalties, according to the judge’s order.
TCA, which lent money at high interest rates to small businesses, allegedly inflated the net asset value of its private funds by at least $130 million as of November 2019, when assets were reported to be $516 million overall, according to the Securities and Exchange Commission’s (SEC) complaint on Monday.
TCA founder Robert…