KCAP fund execs settle US SEC charges of overstating assets

WASHINGTON Wed Nov 28, 2012 11:45am EST

WASHINGTON Nov 28 (Reuters) - Three top executives at KCAP Financial Inc settled charges from securities regulators on Wednesday that they overstated fund assets during the financial crisis.

The Securities and Exchange Commission said the fund company did not account for some market-based activity in determining the fair value of its debt securities and other investments.

KCAP Chief Executive Officer Dayl Pearson and its investment chief R. Jonathan Corless each agreed to pay $50,000 in penalties to settle the charges but neither admitted nor denied the findings.

The fund's former finance chief, Michael Wirth, agreed to a $25,000 penalty and also neither admitted nor denied the charges.