SEC Institutes Settled Order as to Auditor for Failures Related to Audit of Infinity Q’s Mutual Fund

ADMINISTRATIVE PROCEEDING
File No. 3-22610

Mar. 6, 2026 – The Securities and Exchange Commission (“SEC”) today announced settled charges against EisnerAmper LLP, a New York-based audit firm, for failing to perform its audit of the 2020 financial statements for the Infinity Q Diversified Alpha Fund (the “Mutual Fund”) in accordance with Public Company Accounting Oversight Board auditing standards. In February 2021, the SEC suspended redemptions in the Mutual Fund. In February 2022, the SEC charged James Velissaris, the founder and chief investment officer of Infinity Q Capital Management, LLC (“Infinity Q”), the SEC-registered investment adviser to the Mutual Fund, with violating antifraud and other provisions of the federal securities laws in an alleged scheme to overvalue assets held by the Mutual Fund and a private fund advised by Infinity Q. In June 2023, the SEC filed a settled action against Infinity Q in connection with the alleged overvaluation scheme conducted by Velissaris.

According to the SEC’s order, during its audit of the Mutual Fund’s 2020 financial statements, EisnerAmper did not: (1) obtain an understanding of the internal controls around the valuation process that was sufficient to assess and respond to the risk of material misstatements; (2) obtain sufficient appropriate evidence when it performed valuation testing that was not in accordance with applicable auditing standards and EisnerAmper’s audit plan; and (3) exercise sufficient due professional care or professional skepticism in performing the work.

As a result, the SEC’s order finds that EisnerAmper engaged in improper professional conduct within the meaning of Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e)(1)(ii) of the Commission’s Rules of Practice and willfully violated Rule 2-02(b)(1) of Regulation S-X within the meaning of Exchange Act Section 4C(a)(3) and Rule 102(e)(1)(iii). Without admitting or denying the findings, EisnerAmper agreed to a cease-and-desist order and a censure, as well as to certify that it has undertaken the remedial efforts described in the SEC’s order.

The SEC’s investigation was conducted by Ming Ming Yang and Brian Fitzpatrick of the Division of Enforcement’s Asset Management Unit, Zachary Sturges of the Complex Financial Instruments Unit, and James Addison and Russell Feldman of the SEC’s New York Regional Office. The investigation was supervised by the Asset Management Unit’s Lee A. Greenwood and Corey Schuster and the Complex Financial Instrument Unit’s Eric Werner.