ADMINISTRATIVE PROCEEDING
File No. 3-21537, 3-21538

July 31, 2023 – The Securities and Exchange Commission today announced settled charges against Murray Huberfeld for defrauding investment adviser clients of a reinsurance and investment advisory business known as Beechwood, and aiding and abetting investment adviser Platinum Partners’ fraud on Platinum’s clients, and against Moshe “Mark” Feuer and Scott A. Taylor for defrauding Beechwood’s clients. 

According to the SEC’s orders, from late 2013 through at least 2016 Beechwood entered into investment advisory relationships with various insurance company clients and invested a substantial portion of those assets in private funds managed by Platinum and in certain portfolio companies of those funds.  However, at the time Huberfeld and two other individuals had ownership interests in Platinum while also having ownership interests in several Beechwood entities, through various family trusts.  Huberfeld also exercised significant sway over Beechwood’s investment process and caused Beechwood’s clients to invest additional assets in non-Platinum investments in which he had personal interests.  The SEC’s orders find that Huberfeld, Feuer and Taylor all failed to disclose to Beechwood clients the conflicts created by those transactions, as well as the fact that Huberfeld and another individual had a significant role at Beechwood while having a criminal and regulatory history.  

In addition, according to the SEC’s orders, Huberfeld, Feuer and Taylor all helped Beechwood invest client money in Platinum funds and portfolio companies in order to help Platinum make interest payments and avoid default on existing investments, without disclosing the purpose of those investments, which at times resulted in Beechwood clients’ own funds being used to service debt already owed to them.  

According to the SEC order, Huberfeld failed to ensure that Platinum disclosed to its investors that the Beechwood investments that provided much needed liquidity to Platinum had been obtained through disclosure failures to Beechwood clients.

According to the SEC order, Feuer and Taylor also failed to reasonably supervise Beechwood’s initial chief investment officer, who participated in a fraudulent bondholder consent solicitation and caused Beechwood to vote its clients’ bonds in favor of that solicitation. 

The order as to Huberfeld finds that as result of his conduct Huberfeld willfully violated Advisers Act Sections 206(1), (2), and (3) and willfully aided and abetted and caused Platinum’s violations of Advisers Act Sections 206(1), (2) and 206(4) and Rule 206(4)-8 thereunder.  Without admitting or denying the findings in the order, Huberfeld consented to a cease-and-desist order and agreed to a collateral industry bar and to pay $1,464,242.21 in disgorgement, $224,065.21 in prejudgment interest, and a civil money penalty of $180,000.

The order as to Feuer and Taylor finds that as a result of their conduct, Feuer and Taylor willfully violated Section 206(2) of the Advisers Act, and they failed reasonably to supervise Beechwood’s former CIO within the meaning of Section 203(e)(6) of the Advisers Act.  Without admitting or denying the findings in the order, Feuer and Taylor consented to cease-and-desist orders and agreed to collateral industry bars with a right to reapply after two years, and monetary relief as follows:  Feuer shall pay $389,707.21 in disgorgement, $44,037.99 in prejudgment interest, and a civil money penalty of $125,000.  Taylor shall pay disgorgement of $344,586, prejudgment interest of $42,658.63, and a civil money penalty of $100,000.

The investigation was conducted by Danielle Sallah, Jess Velona, Kenneth Byrne, and Adam Grace, under the supervision of Associate Regional Director Sheldon L. Pollock, of the New York Regional Office.