Massachusetts charges adviser with venture-capital fraud

State securities regulators in Massachusetts have charged a Waltham-based investment adviser and his firm, Moser Capital Management, with engaging in fraudulent conduct and breaching their fiduciary duties.

In its complaint, Massachusetts alleges that state-registered Nicklaus J. Moser and his firm routinely made false and misleading statements to both current and potential investors in two venture capital funds he and his firm created to raise money for start-up companies in the state.

The state alleges that Mr. Moser, who was a sales representative of a company that sold products to the start-up companies, failed to disclose to investors his own financial incentives in keeping the businesses afloat.

It also charges that Mr. Moser used the funds he solicited from investors to “pay off its business debts; to loan a [company] executive over $100,000; to pay over $45,000 of bonuses to [company] executives in 2016; and to spend over $76,000 on grocery deliveries, airfare, restaurants, and hotels.”

The complaint seeks a permanent cease and desist order, censure, revocation of Mr. Moser’s investment adviser registration, disgorgement of all proceeds received as a result of the alleged wrongdoing, restitution to investors, and an administrative fine.