SEC Charges Former Investment Adviser with Fraud
On April 29, 2025, the Securities and Exchange Commission (SEC) charged former investment adviser Derek Taller with fraud involving misstatements and self-dealing while managing two investment funds: StHealth Capital and Vision BioBanc. The charges stem from allegations that over the course of nearly six years, Taller misrepresented the governance and financial oversight of these funds to investors.
Key Allegations Against Derek Taller
Between March 2018 and January 2024, Taller allegedly:
- Misrepresented the funds’ governance by falsely claiming independent audits and board supervision.
- Facilitated loans totaling over $23 million to a startup in which he held undisclosed interests.
- Engaged in self-dealing, violating SEC regulations regarding transactions involving conflicts of interest.
“According to the SEC’s complaint, these representations were false, as Vision Holdings never engaged an independent auditor and Taller was the only active board member until at least August 2021.”
In particular, in May 2020, Taller acquired an interest in a startup and subsequently directed StHealth Capital and Vision Holdings to loan the startup a combined $2 million without disclosing his interest. For the rest of 2020 and early 2021, he allegedly directed additional loans exceeding $21 million to the startup and its affiliates, while failing to inform the funds or their investors about his separate business dealings.
Legal Proceedings and Violations
The SEC’s complaint was filed in the U.S. District Court for the Southern District of New York and accuses Taller of violating several sections of securities laws, including:
- Section 17(a) of the Securities Act of 1933
- Section 10(b) of the Securities Exchange Act of 1934
- Sections 206(1) and 206(2) of the Investment Advisers Act of 1940
- Section 57(a)(4) of the Investment Company Act of 1940
The SEC seeks permanent injunctions, disgorgement, civil penalties, and a bar from serving as an officer or director in the future.
Investigation and Leadership
The investigation was undertaken by Wesley W. Wintermyer and supervised by Alison Conn and Thomas P. Smith, Jr. of the SEC’s New York Regional Office. The litigation will be led by Todd D. Brody and Mr. Wintermyer.
