The U.S. Securities and Exchange Commission (SEC) has obtained a final judgment against the defendant Scott Lindell, whom the SEC previously accused of misconduct related to a scheme to overvalue assets worth more than $1 billion.

Lindell, a former senior officer of the SEC-registered investment adviser Infinity Q Capital Management LLC.

The SEC's complaint was filed on September 30, 2022, in the U.S. District Court for the Southern District of New York. The SEC alleges that from February 2017 to February 2021, James Velissaris, the founder and former chief investment officer of Infinity Q, actively manipulated valuation models provided by a third-party pricing service and altered inputs to conceal underperformance of Infinity Q's advisory and hedge funds.

It is alleged that Lindell negligently made false statements to investors, potential investors, and representatives of the mutual fund board, claiming that the pricing service was "independent" of Infinity Q, when in fact Velissaris controlled the pricing service. Further allegations state that Lindell, at Velissaris's direction, aided Velissaris in submitting misleading documents in response to the SEC's preliminary investigation into the matter and, on one occasion, assisted Velissaris in misleading the mutual fund's auditors.

The complaint alleges that Lindell also made false statements in various Infinity Q documents submitted to the Commission.

Lindell has consented to the final judgment, which permanently enjoins him from violating Section 17(a) of the Securities Act of 1933, Rule 13b2-2 of the Securities Exchange Act of 1934, Sections 204(a), 206(2), 206(4), and 207 of the Investment Advisers Act of 1940 and Rules 204-2(a), 206(4)-7, and 206(4)-8 thereunder, orders him to pay a civil penalty of $100,000, and prohibits him from serving as an officer or director of any SEC-reporting company for the next two years.