Though SEC scrutiny of performance results in fund marketing materials is nothing new, a recent settlement order suggests that the Commission continues to closely examine representations in marketing materials with respect to past investment performance.

Old Ironsides Energy, LLC, a Boston-based registered investment adviser, agreed to pay a $1 million penalty to settle SEC charges alleging a material misstatement in its fund marketing materials. In particular, the adviser’s marketing materials allegedly “identified a large, legacy investment with strong, positive returns as an early stage direct drilling investment” (“DDI”) over which the adviser “had direct management in partnership with project operators, when it was actually an investment in a private fund advised by a third party.”