The Daily Startup: Steven Burrill Barred From Securities Industry

This post is by Russ Garland from Venture Capital Dispatch

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Life sciences investor G. Steven Burrill and his namesake investment firm Burrill Capital Management agreed to pay $5.79 million to settle Securities and Exchange Commission charges that he siphoned money from a 2006 venture capital fund for his own coffers and to prop up other business ventures, Dawn Lim reports for VentureWire. The settlement shows that SEC scrutiny of alternative asset managers can also extend to venture capital firms, which typically have operated with less regulatory oversight than their private equity peers. The SEC charged Mr. Burrill for the misuse of about $18 million in investor capital from a $283 million fund and alleged that he channeled $4.6 million of the money into personal uses such as private jet travel and family vacations. Two individuals the SEC claims have aided in the misappropriations–the firm’s former chief legal officer, Victor Hebert, and its former controller, Helena Sen–agreed to pay $185,000 and $90,000, respectively, in civil penalties. The trio has been barred from the securities industry. All of them settled the charges without admitting or denying the SEC’s findings.

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