The allegations read: The securities and exchange commission ("commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to sections 203(f) and 203(k) of the investment advisers act of 1940 ("investment advisers act") against peter j. Decaprio. This matter arises from the failure of former registered investment adviser crow point partners, llc ("crow point") and its principal peter j. Decaprio to disclose certain conflicts of interest to advisory client the eas crow point alternatives fund ("eas fund"), an open-end mutual fund. Through decaprio, crow point made a series of investments of the eas fund's assets into an unregistered fund ("private fund") and did so through an investment adviser-sponsored investment platform ("investment platform"). However, crow point had several business arrangements with the private fund and the investment platform, which created conflicts of interest. As investment advisers, crow point and decaprio owed a fiduciary duty to their client, the eas fund. This duty included the duty to disclose all material facts, including any conflicts of interest, so that the eas fund had sufficient facts to understand the conflicts and make informed decisions. The relationships that decaprio, as principal of crow point and portfolio manager of the eas fund, negotiated and facilitated between crow point and the private fund, investment platform, and others described herein created conflicts of interest that crow point and decaprio did not disclose to the eas fund or its trustees. As a result, decaprio willfully violated section 206(2) of the investment advisers act.
