Family Endowment Partners, LP is a privately owned investment manager. The firm also provides investment advisory and financial planning services to its clients. It primarily provides its services to high net worth individuals, families, institutions, foundations, endowments, corporate investors, retirement plans, pension and profit sharing plans, pooled investment vehicles, other charitable organizations, trusts, estates, and corporations. The firm invests in public equity, fixed income, and alternative investment markets across the globe. It also invests in mutual funds, ETFs, hedge funds, and venture funds. The firm’s alternative investments comprise of private equity, real estate, and na...
255 State Street
Boston, MA 02109
Founded in 2007
Securities and Exchange Commission Announces Fraud Charges against Family Endowment Partners, LP
Sep 29 15
The Securities and Exchange Commission announced fraud charges against a registered investment adviser and its owner for allegedly engaging in self-dealing and failing to disclose material facts to clients regarding conflicts of interest, use of investor funds, and the risks of the investments they recommended. In a complaint filed in U.S. District Court for the District of Massachusetts, the SEC alleges that Family Endowment Partners LP and its owner, Lee Dana Weiss, of Newton, Massachusetts, urged their clients to invest more than $40 million in illiquid securities issued by several related companies without disclosing that Weiss had an ownership interest in the parent company of these entities and received payments from these entities. In addition, the SECs complaint alleges that FEP and Weiss recommended that their clients invest in entities that Weiss owned and controlled without disclosing that the investments would be used primarily to benefit FEP. FEP and Weiss also allegedly advised clients to invest in a consumer loan portfolio while concealing that Weiss himself would secretly pocket half of the clients profits from these investments. According to the SECs complaint: Between 2010 and 2012, FEP and Weiss advised 11 FEP clients and Weiss caused two FEP-affiliated hedge funds to invest more than $40 million in securities issued by subsidiaries of a French company that purportedly had designed methods to reduce the harmful effects of tobacco smoking. FEP and Weiss failed to disclose numerous conflicts of interest, including that Weiss had a financial interest in the French company and that Weiss and entities he controlled received more than $600,000 in payments from that company and related entities shortly after the FEP clients and hedge funds invested in it. The SEC alleges that FEP and Weiss violated the antfraud provisions of the federal securities laws and related SEC antifraud rules and that FEP violated and Weiss aided and abetted violations of SEC rules concerning custody of client assets and the need to provide timely disclosure of significant events.