Visium Asset Management controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2020
Visium claim against Valvani estate dismissed
Visium sought more than $100 million from Valvani’s widow and estate, alleging losses from illegal conduct and breach of fiduciary duty. The New York Supreme Court dismissed the suit based on the expiration of the statute of limitations.
2017
Stefan Lumiere securities-fraud conviction
Lumiere was convicted after trial for securities fraud connected to alleged overvaluation of credit-fund assets. He received an 18-month prison sentence, three years of supervised release and a $1 million fine.
2017
SEC action involving former CFO Steven Ku
Steven Ku agreed to a one-year securities-industry bar and a $100,000 payment to settle allegations that he failed to supervise portfolio managers Plaford and Lumiere.
2016
Securities-fraud and insider-trading investigation
The DOJ and SEC investigated Visium’s conduct involving the Credit Opportunities Fund. Federal authorities charged Sanjay Valvani, Christopher Plaford and Stefan Lumiere in cases involving alleged insider trading and inflated valuations. The investigation caused investor withdrawals and led to the firm’s liquidation.
2016
Death of Sanjay Valvani after indictment
Valvani was indicted over alleged insider trading involving confidential FDA drug-approval information and was found dead in an apparent suicide five days later. The government case against him was dropped because of his death.
2016
Christopher Plaford securities-fraud case
Plaford was accused of helping inflate the value of assets in the Credit Opportunities Fund. He pleaded guilty to securities fraud and was permanently barred from the securities industry.