FlowPoint Partners, LLC and Peter J. DeCaprio

The SEC has charged FlowPoint Partners, LLC and its principal, Peter J. DeCaprio, for misleading investors and breaching fiduciary duties related to four private funds they managed. From July 2020 to late 2023, FlowPoint and DeCaprio falsely claimed the Funds were audited annually by an independent auditor, although only two Funds were engaged with an auditor who never produced reports. They also failed to correct these misstatements and breached fiduciary duties by not obtaining required annual audits for two of the Funds. The SEC alleges violations of several provisions of the Securities Act and the Investment Advisers Act, including antifraud provisions and failing to enforce policies to prevent misuse of nonpublic information. FlowPoint and DeCaprio have agreed to settle by paying $290,000 in penalties, correcting disclosure documents, and implementing other measures, with DeCaprio being barred from serving as an officer or director of public companies for three years. The settlement is pending court approval.