SEC and Manhattan District Attorney investigate Southridge Capital here
Written by Kate Czaplinski, Press Staff
Friday, 09 October 2009 05:54
Authorities from New York appeared to be removing records from the offices of Southridge LLC, a financial services and hedge fund management company, last week.
Ridgefield Police were at the investment firm’s Grove Street offices Friday morning.
“We are assisting the NYPD and the Manhattan district attorney’s office,” Ridgefield Police Capt. Stephen Brown said outside the Executive Pavilion office complex at 90 Grove Street, where Southridge Capital is one of the tenants. “That’s all we can say.”
Forbes is reporting that The Securities and Exchange Commission has opened an investigation into Southridge, according to two subpoenas the SEC sent in late July to companies that had received financing from the firm's hedge funds.
Bloomberg reports that a search warrant was obtained for last Friday’s visit to 90 Grove Street.
A company spokesperson said this week that no charges have been made against the company or company employees.
“We are cooperating fully with authorities and can provide no further information at this time,” the spokesperson said.
The company is still open and operating.
“Southridge LLC was founded 13 years ago and now has several divisions in Ridgefield and New York City, including an investment advisory business, a broker dealer and a variety of managed funds,” the spokesperson said. “The company is committed to growth and our individual business units continue to focus on our clients.”
Ridgefielder Stephen Hicks, a principal of the company, is active in the community. He served on the Fountain Committee and as a board member for the Community Center.
Mr. Hicks released his own statement, saying that the company has done nothing wrong.
“We are cooperating fully with authorities and were very surprised by their inquiry,” Mr. Hicks said. “Our business is sound and our team members, many of whom live in the Ridgefield community, are committed to the ongoing success of the company.”
A spokesperson at the Manhattan district attorney’s office declined to comment about the visit to the Ridgefield office, saying the office does not comment on investigations.
