BlackRock to pay $12 million in SEC conflict of interest case

Commit the crime.
Pay the fine.
Do no time.
The regulator’s living on your dime.


(Reuters) – BlackRock, one of the world’s largest asset managers, agreed to pay $12 million to resolve civil charges that one of its unit failed to disclose a conflict of interest created by one of its top portfolio managers.

The U.S. Securities and Exchange Commission said Monday that BlackRock Advisors breached its fiduciary duties to clients by failing to disclose that Daniel Rice, who oversaw some energy funds, was running a family-owned oil and natural gas company that partnered with a coal company that later became the largest holding of a fund he ran for BlackRock.

A top senior compliance officer at BlackRock Advisors at the time, Bartholomew Battista, agreed to a related $60,000 penalty, the SEC said.

Neither BlackRock [fortune-stock symbol=”BLK”] nor Battista admitted or denied the SEC’s findings in agreeing to settle, and BlackRock also agreed to engage an independent compliance consultant to conduct a review. The company…

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