SEC Charges Backswing Ventures GP LLC and Kyle James Asman for Investment Adviser Fraud
Summary
The SEC filed charges in the U.S. District Court for the Middle District of Florida against investment advisers Kyle James Asman and Backswing Ventures GP LLC for allegedly defrauding investors in their private fund Backswing Ventures Fund I, LP through $515,000+ in excessive management fees (23%+ of capital contributions) and material misrepresentations regarding audits, fund investments, and Asman's credentials.
What changed
The SEC charged Asman and Backswing Ventures GP LLC with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The complaint alleges the advisers charged over $515,000 in management fees (23%+ of capital) in excess of fund document limitations, failed to engage independent auditors or provide required financial statements, and misrepresented fund subscription information, investments, audit status, and Asman's credentials.
Investment advisers and private fund managers should review their fee structures against governing fund documents, ensure timely engagement of independent auditors, and verify the accuracy of all investor disclosures. The SEC enforcement action demonstrates continued scrutiny of fiduciary duty violations and inadequate disclosure practices in the private funds space.
What to do next
- Review investment adviser fee structures for compliance with fund documents
- Verify independent audit engagement and financial statement delivery obligations
- Ensure fund subscription and credential disclosures are accurate
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Backswing Ventures GP LLC and Kyle James Asman
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26525 / April 9, 2026
Securities and Exchange Commission v. Backswing Ventures GP LLC, et al., No. 6:26-cv-00778 (M.D. Fla. filed Apr. 9, 2026)
SEC Charges Florida Investment Adviser for Allegedly Defrauding Investors and a Private Fund Client
On April 9, 2026, the Securities and Exchange Commission filed charges against Windermere, Florida, resident Kyle James Asman and an entity he controls—Backswing Ventures GP LLC—for allegedly defrauding a private fund client through payment of excessive management fees, and further defrauding investors and prospective investors in the fund through misrepresentations and other deceptive acts.
According to the SEC’s complaint, Asman and Backswing Ventures GP, both investment advisers to their private fund client, Backswing Ventures Fund I, LP, paid themselves in excess of $515,000 in management fees—representing more than 23% of the capital contributions to the fund—in contravention of the fund documents. The complaint further alleges Asman and Backswing Ventures GP defrauded and deceived investors and prospective investors in the fund by (i) failing to engage an independent auditor and provide investors with required audited financial statements; (ii) failing to provide investors with unaudited financial statements of the fund at required intervals; and (iii) misrepresenting fund subscription information, fund investments, audit status, and Asman’s credentials.
The SEC’s complaint, filed in the U.S. District Court for the Middle District of Florida, charges Asman and Backswing Ventures GP with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.
The SEC’s investigation was conducted by Gary Zinkgraf and supervised by D. Mark Cave and Jeffrey Weiss, and the litigation will be led by Patrick Costello and supervised by Melissa Armstrong.
The SEC's Office of Investor Education and Advocacy has issued investor alerts on the red flags of investment fraud. Additional information is available on Investor.gov.
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