Enforcement

/Enforcement

RIA Settles Charges of Multi-Million Dollar Scheme

RIA Settles Charges of Multi-Million Dollar Scheme WHAT HAPPENED? On June 7th, 2018, a final consent judgment was entered against a Washington-based investment adviser (“Defendant”) after he mislead more than 100 investors to invest in his funds by providing fraudulent information in breach of his fiduciary duty. The Defendant [...]

SEC Orders Cease-and-Desist to Registered Investment Adviser for Multiple Violations of the Advisers Act

SEC Orders Cease-and-Desist to Registered Investment Adviser for Multiple Violations of the Advisers Act WHAT HAPPENED? On June 4th, 2018, the Securities and Exchange Commission (SEC) released its order instituting administrative and cease-and-desist proceedings against a registered investment adviser (“Respondent”) found to be in multiple violations of the Advisers [...]

SEC Charges Hedge Fund Adviser with Deceiving Investors by Inflating Fund Performance

SEC Charges Hedge Fund Adviser with Deceiving Investors by Inflating Fund Performance WHAT HAPPENED? On May 9th, 2018, the Securities and Exchange Commission (SEC) announced its charges against a registered investment adviser with “inflating the value of private funds it advised by hundreds of millions of dollars.” The scheme [...]

SEC Charges Investment Adviser for Improperly Registering and Violating Multiple Rules

SEC Charges Investment Adviser for Improperly Registering and Violating Multiple Rules WHAT HAPPENED? On April 5th, 2018, the Securities and Exchange Commission (SEC) charged an investment adviser for improperly registering and violating several commission rules. According to the SEC, the sole owner of an investment firm falsely claimed more [...]

SEC Office of Compliance Inspections and Examinations to Release New Cyber Exam Initiative

SEC Office of Compliance Inspections and Examinations to Release New Cyber Exam Initiative WHAT HAPPENED? On March 22nd, Peter Driscoll, Office of Compliance Inspections and Examinations (OCIE) Director, announced plans for its third cybersecurity sweep exam in four years. The next cyber initiative, will focus on advisers who maintain [...]

Bookkeeping Service Considered Custody, Leads to Enforcement

Bookkeeping Service Considered Custody, Leads to Enforcement WHAT HAPPENED? The Securities and Exchange Commission (SEC) recently settled an enforcement action against Financial Fiduciaries, alleging that the adviser had custody of client assets through a “dual employee” who served in various outside business activities. The dual employee worked as a [...]

SEC on Pace to Examine 20% of Advisors

SEC on Pace to Examine 20% of Advisors WHAT HAPPENED? According to Peter Driscoll, the Director of the Office of Compliance Inspections and Examinations, the Securities and Exchange Commission’s efforts are continuing to increase exam rates.  In Fiscal Year 2017, there was an 18% increase over Fiscal Year 2016.  [...]

SEC Announces Share Class Selection Disclosure Initiative

SEC Announces Share Class Selection Disclosure Initiative WHAT HAPPENED? On February 12, 2018, the Division of Enforcement of the Securities and Exchange Commission launched a self-reporting initiative to protect advisory clients from undisclosed conflicts of interest and return money to investors. The Share Class Selection Disclosure Initiative (SCSD Initiative) [...]