Action against an investment advisor, its principal, and its founder, for alleged breach of fiduciary duty. According to the SEC, Respondents induced their client to amend her will, increasing her bequest to a charity that was also a client of Respondents and providing that Respondents would manage most of the donated assets. Respondent investment advisor, Respondent principal, and Respondent founder have agreed to pay civil penalties of $100,000, $50,000, and $25,000, respectively.
Action against Defendant, the former controller and vice president of a security, electronics, and healthcare company, for alleged insider trading. According to the SEC, Defendant learned that the company would not meet its financial expectations and then made a series of options trades betting that the company’s share price would fall.
Parallel enforcement actions against Respondent, a former employee of an investment advisor, for alleged fraud. According to the SEC and CFTC, Defendant mispriced interest-rate swaps and swap options to inflate the returns of funds that the advisor managed, which in turn inflated the advisor’s fees. Respondent has agreed to pay disgorgement of $600,000, prejudgment interest of $49,170.84; and a civil penalty of $100,000 to resolve the SEC action; to pay a $100,000 civil penalty to
- In re Henry J. Wieniewitz, III (A.P. July 18, 2019, Settled)
- In re Laverne C. Moter (A.P. July 1, 2019, Settled)
- In re James B. Catledge (A.P. July 2, 2019, Settled)
- In re Pedro L. Gonzalez-Seijo (A.P. July 5, 2019, Settled)
- In re Paul Douglas Vandivier (A.P. July 9, 2019, Settled)
- In re Thomas H. Laws, CPA (A.P. July 10, 2019, Settled)
- In re Kimm C. Hannan (A.P. July 11, 2019, Contested)
- In re Jehu
Action against Defendants, an investment advisor and its principal, for alleged fraud. According to the SEC, Defendants overvalued certain investments of the funds they managed, enabling them to collect inflated fees.
Action against Defendants, an asset manager, its founder, and its former CFO, for alleged fraud. According to the SEC, Defendants arranged for mergers among three real-estate investment trusts (“REITs”). The SEC alleges that Defendants inflated their incentive fees and fraudulently charged the REITs duplicative, inflated, or fabricated expenses. Defendants have agreed to jointly and severally pay disgorgement in the amount of $39 million. Defendant asset manager, founder, and former CFO have agreed to pay civil
Action against Defendants, founders of an oil and gas company, for an alleged Ponzi scheme. According to the SEC, Defendants fraudulently solicited investments in their company by overstating its projects’ oil and gas production. The SEC also alleges that Defendants made Ponzi-like payments to earlier investors and misappropriated investor funds to pay personal expenses.
Action against Defendants, two microcap investors, for an alleged pump-and-dump scheme. According to the SEC, Defendants cold-called retail investors to tout several microcap stocks that they held and, after the resulting price increase, sold their holdings. The SEC also alleges that Defendants made misrepresentations in touting the stocks and attempted to hide their control of one of the microcap companies. One Defendant has been charged in a parallel criminal proceeding.
Action against Respondents, two investment advisors and their founders, for alleged fraud. According to the SEC, Respondents made various misstatements in Form ADV filings, including claiming that they had assets under management when they had none and were ineligible to register as investment advisors. The SEC also alleges that Respondents misled prospective clients about the composition and qualifications of their investment-advisory team. Two Respondent founders have agreed to pay civil penalties of $25,000 each and
Action against Respondents, a broker-dealer, two of its affiliates, and its principal, for alleged registration violations. According to the SEC, Respondents transacted in securities without registering as a broker-dealer and kept inaccurate books and records resulting in a net capital deficiency. Two Respondent firms have agreed to pay total disgorgement of $460,803.84, and all three Respondent firms have agreed to jointly and severally pay a civil penalty of $25,000.
Action against Respondents, an accountant and his firm, for alleged professional misconduct. According to the SEC, Respondents violated PCAOB standards in connection with multiple audits, including by failing to conduct engagement-quality reviews and exercise due care and professional skepticism. Respondents have agreed to bars against practicing or appearing before the SEC as accountants.
Action against Defendant, a former stockbroker, for alleged registration violations. According to the SEC, Defendant solicited investment in an energy company in an unregistered offering using an unregistered broker.
Action against Respondent, an unregistered investment advisor, for alleged misappropriation of client funds. According to the SEC, Respondent misappropriated money from the funds he managed for clients to pay personal expenses. Respondent has agreed to pay a civil penalty of $50,000 and to officer-and-director, investment-advisor, and other bars.
Actions against Respondents, a registered municipal advisor and two unregistered consultants, for alleged registration violations. According to the SEC, one Respondent consultant engaged the other two Respondents to solicit municipal advisory business when the latter two were not registered as solicitor municipal advisors. Two Respondents have agreed to pay civil penalties of $10,000 each, and the third has agreed to pay a civil penalty of $25,000.
Action against specialty retailer and its former chief operating officer (“COO”) for improper accounting practices. According to the SEC, Defendants understated the company’s allowance for bad debts and overstated its income. Defendant company has agreed to pay a $1.1 million civil penalty. Defendant COO has agreed to pay a $50,000 civil penalty.