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New Jersey asset management firm CCO pleads guilty to $401m fraud

New Jersey turnpike
Photo: Gary Hershorn/Getty Images

Julie DiMauro

3 min read
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With SEC and DOJ charges pending, we examine the case and assess the implications of the CCO’s characterization as a gatekeeper.

A multi-year fraud that concealed losses of hundreds of millions of dollars from investors has led the SEC to charge John Hughes, president, co-founder and chief compliance officer (CCO) of registered investment adviser Prophecy Asset Management LP, for his alleged involvement.

The SEC’s complaint contends the former CCO violated the

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