Last week, the United States Securities and Exchange Commission (“SEC”) filed an emergency action against a registered investment adviser alleging the following unauthorized acts:
- pledging of securities owned by clients;
- placing client funds belonging to segregated client accounts to a “house” account;
- commingling assets without ability to verify ownership of particular securities; and
- providing clients with false account statements that failed to reflect actual holding and encumbrance/pledges.
The District Court for the Northern District of Illinois ordered the investment adviser to provide a full accounting of client assets within five days.
Posted by Bryan Hill
Labels: Enforcement
