The U.S. Securities and Exchange Commission has charged venture capitalist Mike Rothenberg with “overcharging investors to fund personal projects, including sending millions of dollars to his own virtual reality production company,” according to a press release.
Why it matters: Without admitting or denying the charges, Rothenberg and his firm have agreed to settle the lawsuit, which is subject to approval from federal court. They have also agreed to be barred from the brokerage and investment advisory business for five years. This comes as Rothenberg has been working to revive his venture capital career and profile since the firm initially ran into troubles. His firm was known for hosting extravagant parties, which were paid for in part by investors' funds, according to the SEC.