Blog Posts Tagged With Financial Institutions and Regulated Entities

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In re Cargile Investment Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $67,553.86 and prejudgment interest of $2,587.61.

SEC Order
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In re Wedbush Securities, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,703,194.38 and prejudgment interest of $149,346.59.

SEC Order
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In re Henley & Company Wealth Management (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $32,657 and prejudgment interest of $4,209.

SEC Order
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In re Folger Nolan Fleming Douglas Capital Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondents, two investment advisers, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $58,477.87 and prejudgment interest of $1,001.40.

SEC Order
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SEC v. Yellowstone Partners, LLC, David H. Hansen, and Cameron G. High (D. Idaho. Sept. 30, 2019, Contested)

Action against Defendants, an investment adviser and its principals, for allegedly overbilling clients for services performed and billing for services not performed.  The SEC further alleges that Defendants failed to keep adequate books and records.

SEC Complaint

SEC Litigation Release
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In re Outset Global, LLP (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a United Kingdom-based financial services company, for alleged registration failures.  The SEC alleges that Respondent executed transactions on behalf on U.S. institutional clients without registering as a broker-dealer.  Respondent agreed to pay disgorgement of $135,000, prejudgment interest of $22,409.97, and a civil penalty of $50,000.

SEC Order

SEC Administrative Summary
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In re Independent Financial Group, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,250,386.58 and prejudgment interest of $175,764.06.

SEC Order
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In re Bill Few Associates, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $2,201,454.07 and prejudgment interest of $191,850.74.

SEC Order
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In re Saxony Capital Management, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $212,324.53 and prejudgment interest of $17,896.31.

SEC Order
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In re Hilltop Securities, Inc., and Hilltop Securities Independent Network, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondents, two investment advisers, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $736,497.48 and prejudgment interest of $74,287.92.

SEC Order
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In re Schulman Lobel Zand Katzen Williams & Blackman, LLP (A.P. Sept. 30, 2019, Contested); In re Marla P. Manowitz, Thomas R. Vreeland, and Kenneth J. Gralak (A.P. Sept. 30, 2019, Settled)

Actions against Respondents, an auditing firm and three CPAs, for alleged violation of auditing standards. The SEC alleges that Respondents failed to adequately investigate and perform due diligence concerning the audited company’s assertions and records.  One Respondent has agreed to a three-year accounting suspension and to pay a civil penalty of $25,000.  Another Respondent has agreed to a two-year accounting suspension and to pay a civil penalty of $15,000.  A third Respondent has agreed to
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In re Virtu Americans, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a “dark pool” trading company, for alleged violation of Regulation SCI.  According to the SEC, Respondent operated an alternative trading system subject to Regulation SCI but failed to establish policies and procedures, file annual and quarterly reports, conduct an annual compliance review, comply with business-continuity and disaster-recovery plan requirements, and maintain books and records as required by the regulation.  Respondent has agreed to pay a civil penalty of $1,500,000.

SEC Order

SEC
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In re Michigan Advisors, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $295,580.55 and prejudgment interest of $32,396.17.

SEC Order
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In re Comprehensive Capital Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent has agreed to pay disgorgement of $83,401.41 and prejudgment interest of $10,230.70.

SEC Order
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In re Equity Services, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $535,240.67 and prejudgment interest of $51,777.05.

SEC Order
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In re IC Advisory Services, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,052,473.03 and prejudgment interest of $142,713.17.  

SEC Order
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In re Mid Atlantic Financial Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $900,069 and prejudgment interest of $126,933.

SEC Order
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In re IPG Investment Advisors, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $76,962.71 and prejudgment interest of $8,331.61.

SEC Order
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In re Essex Financial Services, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $2,755,879 and prejudgment interest of $230,710.94 with all but disgorgement of $645,000 being subject to potential waiver.

SEC Order
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SEC v. Bluepoint Investment Counsel, et al. (W.D. Wisc. Sept. 30, 2019, Contested)

Action against Defendants, individuals and investment management firms, for allegedly collecting excessive management fees.  The SEC alleges the Defendants overvalued a private investment fund’s assets and returns, leading to the collection of overstated management fees.  The SEC further alleges failure to disclose potential conflicts of interest in certain transactions, including management fees paid to companies owned by Defendants.

SEC Complaint

SEC Litigation Release
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In re Founders Financial Securities, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,246,133.60, prejudgment interest of $229,332.28, and a civil penalty of $140,000.

SEC Order

SEC Administrative Summary
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In re Rafael Novales (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a registered introducing broker, for alleged false statements to a regulator. According to the CFTC, Respondent submitted to an interview in connection with a CFTC investigation, during which he falsely stated that he always spoke with customers and obtained their authorization before executing orders on their behalf.  Respondent has agreed to pay a $50,000 civil monetary penalty and to a five-year registration bar.

CFTC Order

CFTC Press Release
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In re Investment Partners, Ltd. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $39,418.90 and prejudgment interest of $3,965.91.

SEC Order
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