SEC v. Scott Lindell (mismarking, 2022)

Settled

✓ Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-scott-lindell-mismarking-2022) by email

In September 2022 the SEC charged Scott Lindell, former chief risk officer, chief compliance officer and valuation committee member of Infinity Q Capital Management, over a more than $1 billion overvaluation scheme run by founder James Velissaris, alleging he misrepresented the pricing service as independent, helped mislead SEC staff and the fund's auditor, and made false filings. Lindell agreed to settle, subject to court approval, with remedies and any officer-director bar left to the court.

The record

What was ordered

Civil penalty

—

Disgorgement

—

Prejudgment interest

—

Total relief

—

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this action on September 30, 2022 as litigation release LR-25542, filing civil action 1:22-cv-08368 in the Southern District of New York. The defendant is Scott Lindell (1 individual, 0 entities). The mismarking itself was Velissaris's; Lindell is charged with failing to act on red flags and with misleading others.

The complaint alleges that from at least February 2017 through February 2021 Velissaris manipulated the valuation models available from a third-party pricing service and altered inputs to mask the poor performance of the Infinity Q mutual fund and hedge fund. Lindell allegedly told investors, the fund board and others that the service was independent when Velissaris controlled it, helped Velissaris send misleading documents to SEC staff and once helped mislead the fund's auditor, and made misstatements in Infinity Q's filings. He is charged under Securities Act Sections 17(a)(2) and (3), Exchange Act Rule 13b2-2 and Advisers Act Sections 206(2), 206(4) and 207, with aiding and abetting the adviser's violations.

Lindell agreed, subject to court approval, to a permanent injunction. Disgorgement, interest, penalties and whether to impose an officer-and-director bar were left for the court, so no relief or bar is recorded. An earlier version listed a bar as imposed and a parallel criminal case; the release names none against Lindell, only the U.S. Attorney's assistance. The SEC separately sued Velissaris in February 2022.

For the regulator's own account of the facts, read the primary document linked above.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Mismarking — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-09-30 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 20, 2026. submit a correction.