US federal regulator SEC has dismissed all fraud claims against the Indian-origin chief financial officer of a fund management company in a lawsuit brought against him and another Indian-American top executive of the firm after a settlement was reached in the case.
George Palathinkal, 53, a citizen of Singapore, served as a General Partner, Chief Financial Officer, and Chief Compliance Officer of Aphelion Fund Management from March, 2013 through June, 2014.
In May 2014, the Securities and Exchange Commission (SEC) filed a lawsuit against Palathinkal and Vineet Kalucha, the chief investment officer of Aphelion.
According to documents filed with the US District Court, Southern District of New York, on March 10 this year, "counsel for the SEC and counsel for Palathinkal reported to the Court that the SEC staff had agreed in principle to recommend that the SEC accept a settlement offer made by Palathinkal, which will require SEC approval".
A "stipulation of dismissal" order filed on June 18 said the SEC and Palathinkal "jointly stipulate that all claims that were asserted by the SEC against Defendant George Palathinkal in this action be dismissed with prejudice and without costs, and waiving all rights of appeal".
