November 30, 2017 07:36 Financial Times Four journalists, James Fontanella Khan, Surjit Indap, Joe Lennison and Kara Scannell, report from New York.

Original link: /story/001075285?full=y This report describes three events: 1. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Guggenheim Partners regarding the latter’s investment of client funds in an executive associate, Diamond.

Bob Diamond founded the company to investigate.

2 Guggenheim Partners' compliance team is scrutinizing a $100 million loan to a company indirectly controlled by Argentinian businessman Diego Ball.

3 Journalist investigation into Guggenheim Partners’ investment in BCBG Max Azria, which filed for bankruptcy in early 2017, leaving Guggenheim Partners with losses but Juan Ball

) had no losses on its $54 million loan.

Mark Walter is the CEO of Guggenheim Partners, Juan Ball is a former executive at Guggenheim Partners, and Diego Ball

) is a friend of Mark Walter.

The severity of the three incidents decreases in order. The first is the government's investigation, the second is the company's own investigation, and the third is the reporter's investigation.

The first incident was an alleged violation of Section 17(d) of the U.S. Securities and Exchange Commission (SEC), which prohibits asset managers from investing in companies in which affiliates are also shareholders.

In all three cases, at least $1 billion of client money was invested in companies with personal ties to Guggenheim Partners executives and largest shareholders, and the firm's own compliance department had warned of a lack of due diligence on some of the deals.

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In at least three incidents, employees raised questions about whether internal compliance procedures designed to guard against self-dealing were being followed.

Eight of those former and current employees believed the company's investment culture encouraged turning a blind eye to potential violations.

The SEC investigation focuses on whether Guggenheim Partners improperly invested client funds in companies founded by Bob Diamond.

Bob Diamond is a long-time close friend of Scott Minerd, chief investment officer of Guggenheim Partners.

Guggenheim Partners recently received a 50-page “deficiency letter” from the U.S. Securities and Exchange Commission (SEC).

The article implies that all doubts have attracted the attention of the U.S. Securities and Exchange Commission (SEC), but this incident is the focus, but it is not explicitly stated.

Bob Diamond was not investigated and has not been accused of any wrongdoing.

It's unclear whether the SEC investigation will result in fines or sanctions.

Spokespeople for Bob Diamond and Atlas Mara declined to comment.

Atlas Mara is a company owned by Bob Diamond and invests in African banks.

The subject of the investigation is a transaction in 2015 in which two funds from Guggenheim Partners, headed by Scott Minerd, purchased a bond from Atlas Mara, owned by Bob Diamond.

The investigation also includes whether the transaction violated Section 17(d) of the Securities and Exchange Commission (SEC), which prohibits asset managers from investing in companies whose affiliates are also shareholders.

At the time, Guggenheim Partners' internal compliance department raised red flags about the deal, citing potential conflicts of interest.