Macquarie Group's investment adviser has agreed to pay nearly $80 million to settle charges with the SEC for overvaluing collateralized mortgage obligations (CMOs) in advisory accounts. The SEC alleged that the Macquarie unit, part of the Australian financial services company, inflated the value of thousands of illiquid investments and overstated the performance of client accounts. Additionally, the firm executed cross-trades that favored certain clients over others. The settlement addresses the misvaluation of approximately 4,900 CMOs and largely illiquid mortgage-backed securities.