Because the investigations into the accounting issues delayed D.B. Zwirn & Co.’s ability to complete its regular annual financial statements, it was unable to provide certain needed documents to investors in a timely manner, contributing to the firm’s ultimate decision to wind down the related funds and sell the company’s remaining assets. In negotiations with a variety of potential buyers, CEO Daniel Zwirn resisted selling D.B. Zwirn & Co.’s assets to any firm that intended to charge its investors higher fees. The firm sold its assets to an affiliate of Fortress Investment GroupFortress Investment Group LLC and closed its doors in 2009. The SEC finished its investigation and cleared the firm and CEO Zwirn in 2011, more than four years after the firm had self-reported its accounting irregularities and its corrective action to the government.
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