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Portfolio > Asset Managers

Ex-BlackRock Portfolio Manager Asked Film Company for Favors: SEC

By Melanie Waddell

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The Securities and Exchange Commission on Thursday charged Randy Robertson, a former portfolio manager at BlackRock Advisors LLC, with failing to disclose a conflict of interest related to his relationship with a film distribution company in which the fund he managed for BlackRock invested millions of dollars.

To settle the charges, Robertson agreed to pay a $250,000 penalty.

Robertson, who was also a former co-portfolio manager for the BlackRock Multi-Sector Income Trust (BIT), a closed-end management investment company, failed to disclose a conflict of interest concerning the largest investment held by BIT, a lending facility in affiliates of Aviron Group LLC.

From 2015 through 2019, BIT invested in the aggregate of roughly $85 million in a secured lending facility to fund the print and advertising expenses associated with particular films Aviron distributed, the SEC order states.

According to the SEC, “Robertson played a primary role in identifying and selecting the Aviron Investment and a significant role in overseeing the Aviron Investment.”

Before and during the time of the Aviron Investment, “Robertson requested generally that Aviron help his daughter’s career, and on occasions Aviron presented her with potential opportunities in the film industry.”

Aviron helped Robertson’s daughter “obtain a small role in a film produced in 2018,” the SEC said.

“Robertson did not disclose to BIT’s board of trustees or BlackRock’s compliance and legal teams that he asked Aviron to help advance his daughter’s acting career or that Aviron helped his daughter obtain a film role,” according to the SEC.

Robertson consented to the entry of the SEC’s order finding that he violated Section 206(2) of the Investment Advisers Act of 1940. Without admitting or denying the SEC’s findings, Robertson agreed to a cease-and-desist order, a censure, and the $250,000 penalty referenced above.

Melanie Waddell

@Think_MelanieW

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