The United States Securities and Exchange Commission (“SEC”) recently announced the issuance of an Order Instituting Administrative Cease-and-Desist Proceedings against Next Financial Group, Inc. (“Next”) for alleged violations of Regulation S-P (Privacy of Consumer Financial Information).
Category Archives: Enforcement
SEC Files Enforcement Action Against Investment Adviser for Misappropriation, Commingling & Pledging Client Assets
August 27, 2007
Last week, the United States Securities and Exchange Commission (“SEC”) filed an emergency action against a registered investment adviser alleging the following unauthorized acts:
SEC Settles a Form 13F Filing Violation for a $100,000 Penalty
August 16, 2007
Earlier today, the United States Securities and Exchange Commission (“SEC”) issued Investment Advisers Act of 1940 Release No. 2634 (August 15, 2007) announcing its settlement with Quattro Global Capital, LLC, a registered investment adviser to a group of hedge funds, for failing to properly file the Form 13F.
SEC Charges 14 individuals for Insider Trading Scheme.
March 05, 2007
In a March 1 press release, the SEC announced that it is charging “14 defendants in a brazen insider trading scheme that netted more than $15 million in illegal trading profits on thousands of trades, using information stolen from UBS Securities, LLC and Morgan Stanley & Co., Inc. The SEC complaint alleges that eight Wall Street professionals, including UBS research executive and a Morgan Stanley attorney, two broker-dealers and a day-trading firm participated in the scheme. The defendants also include three hedge funds, which were the biggest beneficiaries of the fraud.” To read the full text of the press release click here.
New York Attorney General Elliot Spitzer announced a filing of a lawsuit against UBS Financial Services, Inc. for allegedly defrauding its customer through its fee-based brokerage program. Spitzer’s action alleges that fee-based brokerage accounts are inappropriate for investors who rarely trade securities or hold significant amounts of cash.
Kansas Securities Regulator Suspends IA Firm
November 28, 2006
Earlier this fall, the Office of the Kansas Securities Commissioner entered an order to summarily suspend the investment advisor registration of a state firm located in Overland Park, Kansas. According to the Commissioner’s Press Release, the “firm committed fraud by informing a client that his funds were maintained in an account at a brokerage firm when, in fact, the funds were pooled with the funds of other investors in a second account controlled” by the advisor firm’s president. The firm also apparently did not fully cooperate with the state examiners during their investigation. This enforcement action serves as example as to how Kansas securities regulator will respond when an investment advisor attempts to circumvent state securities laws.
Earlier this month, the SEC filed an administrative proceeding against an advisor firm for, among other things, failing to meet the requirements of Rule 206(4)-7 which requires an investment adviser registered with the SEC to adopt and implement written policies and procedures reasonably designed to prevent violation of the Advisers Act and the rules there under. During a follow-up visit the SEC felt the firm failed to adequately correct deficiencies noted during a previous examination. In addition, the firm had not implemented any written compliance programs designed to meet the requirements of Rule 206(4)-7. The firm was censured, order to cease and desist from violating several rules under the Advisers Act, and ordered to pay a monetary fine totaling $65,000.
Is Your Firm Supervising Charges for Financial Plans?
July 01, 2005
The New Jersey Attorney General just announced a $5 million settlement to be paid by an investment advisor/broker-dealer for failing to supervise its representative.
