Securities and Exchange Commission v. Gary R. Marks, CV-12-4486-JSC (N.D. Cal.).  On August 27, the SEC announced it had filed a settled action against Gary R. Marks.  Marks managed various fund of funds hedge funds through Sky Bell Asset Management, Inc. (an investment adviser previously registered with the Commission), including a fund that was co-managed with several groups including Sky Bell Offshore Partners (collectively “Sky Bell Hedge Funds”).  Marks misrepresented the level of correlation and diversification among the Sky Bell Hedge Funds.  He also made unsuitable investment recommendations to certain advisory clients, he failed to disclose that PipeLine Investors invested significantly in a subadviser’s fund, and he provided misleading information to certain investors about liquidity problems at the Agile Sky Alliance Fund.  Without admitting or denying the allegations, Marks consented to the entry of a Final Judgment enjoining him from future violations of Sections 206(2) and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, and Sections 17(a)(2) and 17(a)(3) of the Securities Act.  He will also pay disgorgement of $321,702, a civil monetary penalty of $100,000, and prejudgment interest.