SOURCE: American Pegasus LDG, LLC

December 21, 2010 15:28 ET

American Pegasus Reaches Settlement With SEC

SAN FRANCISCO, CA--(Marketwire - December 21, 2010) - American Pegasus LDG, LLC, along with its affiliated company, American Pegasus Investment Management, Inc., today announced that the companies have reached a settlement with the SEC regarding alleged violations of securities laws by the firms and three individuals formally affiliated with them. Neither the American Pegasus companies, nor the former individuals, have admitted or denied the SEC findings.

American Pegasus fully cooperated with the SEC during its investigation, which related to transactions that occurred between 2007 and the spring of 2009. The three individuals voluntarily resigned their positions earlier this year, and American Pegasus has implemented new compliance measures designed to improve communications with investors and protect against conflicts of interest.

American Pegasus also has reconstituted its senior management team and legal/compliance operations, and brought in two seasoned and experienced independent Board Members for the funds that the firm advises. These new board members are: The Honorable Isaac C. Hunt, Jr., former SEC Commissioner under Presidents Bill Clinton and George W. Bush; and Kathy Levinson, former President and COO of E*TRADE Group, Inc., and a former senior executive at Charles Schwab & Co.

The new General Manager of American Pegasus is Pauline Lee. With more than 15 years of experience in data analysis, financial services, and investment management operations, Ms. Lee has been associated with American Pegasus since 2003. Most recently she served as Chief Operating Officer of American Pegasus. 

The company's new General Counsel and Chief Compliance Officer is Henry Wolfgang Carter, Esq. An experienced attorney and financial industry compliance expert, Mr. Carter has worked in the industry for more than 21 years. Prior to joining American Pegasus earlier this year, Mr. Carter served in various legal and compliance capacities at other financial services firms in the San Francisco Bay Area, including E*TRADE Securities, Inc., where he was Vice President and Chief Compliance Officer from 1997 to 2000. He also served as Associate General Counsel for E*TRADE Group from 2000 to 2001.

According to Ms. Lee, "We are fortunate that these distinguished financial industry leaders have agreed to join the American Pegasus Board as independent directors. As a former SEC Commissioner under two US Administrations and law school dean, Commissioner Hunt will play an important role in helping to guide American Pegasus as it moves forward under new management. Kathy Levinson, a pioneer and acknowledged leader and innovator in the financial services industry, brings practical experience and a valuable global perspective to the funds. American Pegasus' new management team and board of directors are fully focused on the interests of the company's shareholders and the future."

About American Pegasus LDG, LLC
Headquartered in San Francisco, CA, American Pegasus LDG, LLC is an investment advisory and fund operating company that develops a variety of investment products for investors in Asia and worldwide. As part of its business, the company manages several funds that are registered in the Cayman Islands.