© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo
NEW YORK (Reuters) – Prime Group Holdings LLC, a private equity firm based in Saratoga Springs, New York, has agreed to pay $20.5 million to settle U.S. Securities and Exchange Commission charges related to disclosure failures, the regulator said on Tuesday.
Prime Group failed to adequately disclose millions of dollars in real estate brokerage fees paid to a firm owned by its CEO. The firm agreed to pay a $6.5 million penalty and to give up another $14 million in ill-gotten gains and interest, the SEC said in a statement.
Lawyers for Prime Group, which did not admit or deny the SEC’s charges, did not respond immediately to calls for comment.