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Michael Rothenberg agrees to settle charges with SEC

Michael Rothenberg agreed to settle charges with the SEC that he embezzled money from LPs to pay for personal business ventures and lavish parties and events, according to an SEC press release.

The settlement comes without Rothenberg admitting or denying the allegations, but will bar him from the investment advisory business for five years, the release states. It is subject to approval by Federal District Court for the Northern District of California, which could also determine civil penalties.

The SEC claims that over three years, Rothenberg and his firm, Rothenberg Ventures, misappropriated millions of dollars from funds, including an estimated $7 million of excess fees, to support the personal business ventures and events.

Separately, Rothenberg and his firm sued Silicon Valley Bank claiming the bank made an unauthorized transfer of $4.25 million from a 2015 fund into a management company account, making it appear the firm misappropriated the funds. The move had the impact of costing investors tens of millions of potential gains and “destroying Mr. Rothenberg’s career,” the suit claims.