Maybe that beer at Skosh Monahan’s this Sunday with Andrew Breitbart and Dana Rohrbacher won’t happen afterall. Red County publisher Chip Hanlon’s investment company has been charged with fraud by the SEC.
Here’s the Register’s take on it and the story from the LA Times. From the Times story: “As a result of these misleading statements and omissions,” the SEC complaint said, “Delta appeared to be operationally sound and much larger and more established than it really was.”
As of 2009 the Huntington Beach firm was advising 209 accounts belonging to individuals, pension plans, profit sharing plans, trusts and corporations, the complaint said.
Delta said in filings from 2006 to 2008 that it was advising a registered investment company, according to the SEC, making it eligible to register with the agency. That claim was false, the SEC said.
From 2007 through 2008, Delta’s filings indicated that it was managing $656 million to $1.49 billion, according to the SEC. The actual amount rarely exceeded $25 million and was as low as $9 million, the agency said in a court filing.”
We have reached out to Chip for a comment, and will provide an update if he choses to respond. It appears it’s still business as usual at Red County.