SkiHawk Capital Partners won the dismissal of fraud claims against it, another investment adviser, and their owners and managers by the Securities and Exchange Commission (SEC).

SkiHawk and The Convergence Group (TCG), along with individuals Clement Borkowski, Sean Hawkins, and Joseph Schiff, faced a lawsuit from the SEC in June 2021 accusing them of fraud, material misrepresentations, and breaches of fiduciary duty in connection with three private funds they advised. The agency sought permanent injunctions, disgorgement with prejudgment interest, and civil penalties in its litigation.

TCG announced in a press release Monday the victory over the SEC’s claims.

“Through our dedicated legal defense team, we effectively demonstrated that the allegations made by the SEC were without merit and that the disclosure documents provided to investors accurately depicted the alleged conflicts, asset values, and other business dynamics, contrary to the SEC’s contentions,” the release said. “Our defense emphasized the fact that we fully disclosed all material information, our reliance on the advice of corporate and securities legal counsel, and the fact that we retained reputable CPA firms that conducted audits.”

Borkowski and Hawkins served as owners and managers at both SkiHawk and TCG, while Schiff was just an owner and manager at TCG, according to the SEC’s complaint.

The outcome ended six years of interaction between the agency and the firms, said Hawkins.

“We were confident when the facts came to light, we would ultimately be vindicated that the SEC’s allegations were simply factually wrong,” he stated.

The SEC did not respond to a request for comment. The agency submitted its stipulation of dismissal in the case in September.