Clarity and Understanding for the Workplace

Updates

Brightline Solutions updates IA Act UnwrappedTM on a daily basis. These updates include new Releases, No-Action Letters, Enforcement Cases, Self-Examination Tools and Information related to all aspects of investment adviser compliance.  Subscribers are assured that they have access to the most current information available. The following is a selection of some of the more recent changes. Please login to access the information from the associated databases within IA Act UnwrappedTM.

IA-4796 In the Matter of Brandon P. Long
Misled investors into believing that he and his recommended investments were affiliated with or approved by the federal government and/or the Thrift Savings Plan; failed to disclose the significantly higher annual fees and surrender charges and opened accounts with his BD without the investor’s knowledge or consent.
Barred from association and barred from participating in any offering of a penny stock

IA-4795 In the Matter of Jeffrey S. Preston
Recommended that  clients invest  in unsecured promissory notes issued by a real estate company. despite the fact that, the firm's attorney had cautioned him about the “enormous risk” of such an investment; falsely reassured clients that their principal would be safe while minimizing, and  failing to disclose, significant risks
Barred from association

IA-4794 In the Matter of Paul Edward "Ed" Lloyd, Jr., CPA
Order Changing Location of Oral Argument

IA-4793 In the Matter of Mark Megalli
Insider trading
Public hearing ordered

IA-4791 FAST Act Modernization and Simplification of Regulation S-K
Proposing Release added to the IA Act UnwrappedTM Releases Database
Proposed revisions reflected in IA Act UnwrappedTM Regulatory Database Rule 0-6

IA-4792 In the Matter of Sam Sadeghi
Insider trading
Barred from association

IA-4790  In the Matter of Danny S. Hood
In civil action the SEC alleged, in connection with the sale of annuities, Hood used documents that caused investors to believe that he and his recommended investments were affiliated with or approved by the federal government and/or the Thrift Savings Plan; failed to disclose the significantly higher annual fees associated with the investments and opened accounts with his BD without the investor’s knowledge or consent.
Barred from association and barred from participating in any offering of a penny stock

IA-4789 Semi-Annual Regulatory Flexibility Agenda

IA-4788 In the Matter of Paul Edward "Ed" Lloyd, Jr., CPA
Order rescheduling oral argument

IA-4787 In the Matter of John Austin Gibson, Jr.
Notice that Initial Decision has become final

IA-4786 In the Matter of GL Capital Partners, LLC and GL Investment Services, LLC
Notice that Initial Decision has become final

IA-4785 In the Matter of William D. Bucci
Notice that Initial Decision has become final

LR-23961 SEC v. Richard G. Cody
IA indicted for fraud and for lying to the SEC

IA-4784 In the Matter of Edward D. Jones & Co., L.P.
Order granting exemption from the written disclosure and consent requirements of section 206(3) of the Act to permit Applicant to engage in principal trading with nondiscretionary advisory client accounts subject to the terms and conditions contained in its application.
Added to the IA Act UnwrappedTM Releases Database and to Regulatory Database Rule 206(3)-2 No-Action/Exemptive Orders Tab

LR-23959 SEC  v. Tweed Financial Services, Inc. et al
Adviser Charged with Sending False and Misleading Account Statements to Investors

IA-4783 In the Matter of Paul Leon White, II
Order Dismissing Review Proceeding and Notice of Finality

IA-4782 In the Matter of Jeffrey Timothy Kluge
In criminal case, convicted of bank fraud
Barred from association and barred from participating in any offering of a penny stock

IA-4781 In the Matter of Perry H. Beaumont
IA-4780 In the Matter of SIX Financial Information USA, Inc.
Financial Services Firm and Former Valuation Expert Settle with SEC for Deceiving Client about Valuation Work
SIX agreed to pay disgorgement, prejudgment interest, and a civil penalty of $75,000 into a Fair Fund. The SEC will make a payment of $43,330 to the investment firm to reimburse it for the fees it paid for the services it never received. Beaumont agreed to be barred from the securities industry with a right to reapply after one year, and to pay a civil penalty of $50,000.

LR-23951 SEC  v. Tarek D. Bahgat, Lauramarie Colangelo, and WealthCFO LLC
IA Charged with Stealing Money from Clients

Information Regarding Regulatory Relief for Hurricane Victims
Added to the IA Act UnwrappedTM Regulatory Database - Rules 204-1 and 204-3 Disclosure & Recordkeeping Tabs

ID-1182 In the Matter of Lynn Tilton; Patriarch Partners, LLC. et al
Initial Decision dismisses charges concerning Respondents’ operation of three collateral loan obligation funds, known as the Zohar Funds

IA-4779 In the Matter of Avaneesh Krishnamoorthy
In criminal case, pled guilty to securities fraud; insider trading
Barred from associaiton and barred from participating in any offering of a penny stock

Testimony on Oversight of the SEC  
SEC Chairman Jay Clayton - Before the Senate Committee on Banking, Housing and Urban Affairs
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

IA-4778 In the Matter of VisionPoint Advisory Group, LLC
Failed to disclose that its owner and IA Reps received forgivable loans of more than $1.3 million and additional non-forgivable loans from a BD that provides clearing and custody services for VisionPoint’s advisory clients - did not disclose the loans or the conflict of interest arising from this compensation in SEC filings or to clients
Sanctioned - ordered to pay a civil moentary penalty of $45,000

IA-4777 In the Matter of 360 Financial, Inc.
Failed to disclose to clients that it received a forgivable loan of $446,356 from a BD and a separate non-forgivable loan from a broker that provides clearing and custody services for 360 Financial’s advisory clients - did not disclose the loan or the conflict of interest arising from this compensation in SEC filings or to clients.
Sanctioned - ordered to pay a $40,000 civil monetary penalty

IA-4776 In the Matter of TRH Financial LLC
Failed to disclose to clients that it received a forgivable loan of almost $350,000 from a BD that provides clearing and custody services for TRH’s advisory clients - did not disclose the loan or the conflict of interest arising from this compensation in SEC filings or to clients.
Sanctioned - ordered to pay a $35,000 civil monetary penalty

IA-4775 In the Matter of Brian J. Keenan
In criminal case, pled guilty to misappropriating client assets for personal use
Public hearing ordered

IA-4774 In the Matter of Aletheia Research and Management, Inc.
Cherry-picking; Codes of Ethics Failures
Investment Adviser Registration Revoked
Added to the IA Act UnwrappedTM Releases Database and to Risks/Significant Cases under Regulatory Database Rule 204A-1, Codes of Ethics

IA-4773 In the Matter of Marshall G. Eichenauer, Jr. and Sagent Wealth Management, LLC
Used money invested in a fund they managed to finance loans that personally benefitted Eichenauer

LR-23941 SEC  v. Moses Investment Company, LLC and Michael S. Moses
IA & Owner Charged with Lying about Experience and Past Performance

IA-4772 In the Matter of Platinum Equity Advisors, LLC
Charged three private equity fund clients about $1.8 million more than it should have in broken deal expenses
Platinum consented to the entry of a cease-and-desist order and agreed to pay a total of $1,902,132 in disgorgement and prejudgment interest and a $1.5 million civil penalty

Statement on Cybersecurity  
SEC Chairman Clayton Discloses the Commission’s Cyber Risk Profile, Discusses Intrusions at the Commission, and Reviews the Commission’s Approach to Oversight and Enforcement 
Added to the IA Act UnwrappedTM Examination Tools Database/2017 Information

LR-23939 SEC  v. Francisco Illarramendi, et al.
United States v. Illarramendi
Final judgment against 8 entities used to perpeptrate multimillion dollar Ponzi scheme

IA-4771 In the Matter of George Russell Thorenson
scheme to manipulate the reported share price and volume of Abakan, Inc. common stock
Barred from association and barred from participating in any offering of a penny stock

IA-4770 In the Matter of Mark A. Gomes
Scalping
Barred from association for 5 years and ordered to pay a civil monetary penalty

IA-4769 In the Matter of Suntrust Investment Services, Inc.
Breached fiduciary duty to its advisory clients, made inadequate disclosures that failed to explain certain conflicts of interest, and had deficiencies in compliance policies and procedures in connection with its mutual fund share class selection processes
Pay disgorgement plus pre-penalty interest and pay a civil monetary penalty

The Most Frequent Advertising Rule Compliance Issues Identified in OCIE Exams of IAs
OCIE National Exam Program Risk Alert
Added to the IA Act UnwrappedTM Examination Tools Database/2017 Information and to Regulatory Database Rule 206(4)-1, the Advertising Rule

IA-4768 In the Matter of Howarth Financial Service, LLC, and Gary S. Howarth
IA-4767 In the Matter of Jeremy A. Licht d/b/a/ JL Capital Management
Cherry-picking
Licht, Howarth and Howarth Financial Services agreed to the entry of cease-and-desist orders and to pay disgorgement, prejudgment interest and civil penalties. Licht and Howarth also agreed to be barred from the securities industry.

IA-4766 In the Matter of Potomac Asset Management Company, Inc. and Goodloe E. Byron, Jr.
Sanctions for improper allocation of fees and expenses to two private equity fund clients
PAMCO’s Improper Use of Fund Assets to Pay Portfolio Company Fees; Failure to Offset Advisory Fees; Improper Use of the Funds’ Assets to Pay Adviser-Related Expenses; Material Omissions in Forms ADV Concerning PAMCO’s Compensation; Violation of the Custody Rule by Failing to Disclose Related Party Transactions in the Funds’ Audited Financial Statements in Violation of GAAP; Failure to Make Timely Capital Contributions to the Funds; Failure to Adopt and Implement Reasonably Designed Compliance Policies and Procedures
Censured and ordered to pay a $300,000 civil monetary penalty

IA-4765 In the Matter of Gary Yin
In criminal case convicted of insider trading
Public hearing ordered

IA-4764 In the Matter of Envoy Advisory, Inc.
Breaches of fiduciary duty, inadequate disclosures, and compliance deficiencies
Must pay disgorgement, prejudgment interest and a civil monetary penalty

IA-4763 In the Matter of Mike Lundy a/k/a/ Barkley J.W. Lundy
Solicited funds from his clients to purportedly acquire municipal bonds, but misappropriated funds for his personal benefit and to pay prior investors
Barred from association

IA-4762 In the Matter of Steven C. Scudder
In criminal case, pled guilty to wire fraud - Scudder devised, executed, and participated in a scheme to defraud investors and to obtain money and property owned by and under the custody and control of investors, by means of materially false and fraudulent pretenses, representations, and promises, and the non-disclosure and concealment of material facts.
Barred from association

IA-4761 In the Matter of Larry C. Grossman
Order Scheduling Briefs

IA-4760 In the Matter of James Y. Lee
Notice that Initial Decision has become final

IA-4759 In the Matter of Hans Peter Black and Interinvest Corp., Inc.
Notice that Initial Decision has become final

LR-23919 SEC v. Sonya D. Camarco, Camarco Investments, Inc. and Camarco Living Trust
Asset Freeze against Former Broker Charged with Stealing Client Funds

IA-4758 In the Matter of Municipal Finance Services, Inc., Rick A. Smith and Jon G. Wolff
Breach of fiduciary duty
Respondents must pay civil monetary penalties

Complaint 2:17-cv-06204 SEC v. Jeremy Joseph Drake
IA Charged with Defrauding Professional Athlete and His Wife
Added to the IA Act UnwrappedTM Enforcement Case Database

IA-4757 In the Matter of Sylvester King, Jr.
IA-4756 In the Matter of Aaron R. Parthemer
Sold unregistered, illiquid securities; misrepresented and omitted material facts regarding the investments; ignored policies procedures and warnings and instructions not to use personal email for business
King is barred from association and barred from participating in any offering of a penny stock for 3 years
Parthemer - within 35 days of an order lifting the stay in his chapter 7 bankruptcy case - must pay a civil monetary penalty of $160,000

IA-4755 In the Matter of Jeffrey Gainer
In criminal case, pled guilty to sale of unregistered securities
Public hearing ordered

IA-4754 In the Matter of Brian Michael Berger
In criminal case, pled guilty to wire fraud; ordered to pay restitution and currently encarcerated
Public hearing ordered

IA-4753 In the Matter of Martin Shkreli
Shkreli was convicted of securities fraud by: defrauding investors and potential investors in MSMB and MSMB Healthcare through material misrepresentations and omissions relating to  prior performance, assets under management, and misappropriations of fund assets; and conspired to defraud investors and potential investors through material misrepresentations and omissions about the control of unrestricted or “free trading” shares.
Public hearing ordered

IA-4752 In the Matter of Gerardo E. Reyes
Fraud; In criminal case, pled guilty to wire fraud, sentenced to prison for 4 years and ordered to make restitution
Public hearing ordered

IA-4751 In the Matter of Vertical Capital Asset Management, LLC, Gustavo A. Altuzarra, Christopher R. Chase, et al
Fraudulent schemes
VCAM’s investment adviser registration is revoked; Altuzarra & Chase are barred from association; prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal
underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and prohibited from participating in any offering of a penny stock

IA-4750 Edward D. Jones & Co., L.P. - Request for Exemptive Order
Applicant seeks relief from the written disclosure and consent requirements of Advisers Act
§206(3) that would be similar to relief provided by Rule 206(3)-3T, which expired on Dec. 31, 2016.

IA-4749 In the Matter of Deerfield Management Company, L.P.
Advisers Act §204A violations
Failed to establish policies & procedures reasonably designed to prevent the misuse of material, nonpublic information or to address the risks created by its practice of using research firms; did not enforce it policies & procedures
Must pay disgorgement, prejudgment interest and a civil monetary penalty of over $3 million

Staff Responses to Questions about the Pay to Play Rule 
Updated Q&A regarding Capital Acquisition Brokers (CABs) offers no-action relief
FAQs updated under IA Act UnwrappedTM Regulatory Database Rule 206(4)-5 and added to the Examination Tools Database - 2017 Information

IA-4748 In the Matter of Stephen S. Eubanks
Fraud
Barred from association and barred from participating in any offering of a penny stock

IA-4747 In the Matter of Institutional Investors Advisory Company
Breach of fiduciary duty and failure to make adequate disclosures regarding the distribution of investor profits and its conflict of interest regarding a portion of its advisory fees
Respondent undertakes to pay $1,268,536, which represents the amount of profits that the MAA Investors left remaining in the Reserve Fund upon their withdrawal from IIIF, and prejudgment interest thereon of $146,750; in addition Respondent will pay disgorgement, prejudment interest, and a civil monetary penalty of $250,000

IA-4746 In the Matter of Capital Dynamics, Inc.
IA improperly allocated expenses to private equity fund clients; private equity funds it advised paid over $1.2 million in legal and employee expenses
Ordered to pay a $275,000 penalty

IA-4745 In the Matter of David I. Osunkwo
Outsourced CCO Sanctioned, Suspended and Fined for False Form ADV Filings
Relied on Estimates from CIO That Were Not Verified for Accuracy

Added to the IA Act UnwrappedTM Releases Database and to Regulatory Database Rule 204-2 Risks/Significant Enforcement Cases

IA-4744 In the Matter of Diane W. Lamm
False Form ADV filings; failed to maintain required books and records; CCO role was outsourced, but Lamm, as COO, still liable

Barred from association and prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter
Added to the IA Act UnwrappedTM Releases Database and to Regulatory Database Rule 204-2 Risks/Significant Enforcement Cases

LR-23905 SEC v. Southridge Capital Management LLC, et al.
Misappropriated investor funds; illegally diverted investor money for use by other hedge funds that were illiquid and in need of cash
Ordered to pay $7.9 million in disgorgement and prejudgment interest; Hedge fund manager must pay a $5 million penalty

IA-4743 In the Matter of Coachman Energy Partners, LLC, and Randall D. Kenworthy
Firm & CEO failed to adequately disclosemanagement fees and reimbursable management expenses - as a result, overcharged the funds.
Coachman shall pay disgorgement, prejudgment interest, and a civil penalty; Kenworthy shall pay a civil money penalty

Information Update for Advisers Filing Certain Form ADV Amendments
IM Information Update IM-INFO-2017-06 
Addresses how a filer making an unanticipated other-than-annual amendment must respond to new or amended items in Form ADV Item 5 and the related Schedule D sections, based on recent amendments to Form ADV in rulemaking Release No. IA-4509
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information, and linked to Regulatory Database Rule 204-1: Form ADV Amendments

IA-4742 In the Matter of Bryan Wayne Anderson
Persuaded investors to invest in a stock option trading program and a real estate development company promising a guaranteed rate of return without risk while using the funds to repay other investors and for personal use
Currently incarcerated; barred from association

IA-4737 In the Matter of Bradley T. Smegal
Fraudulently induced clients to make investments in entities in which he had an undisclosed ownership interest or otherwise controlled the investment vehicle;  in almost every case, hediverted a portion of each investment to his personal account and for his own personal use
Barred from association and barred from participating in any offering of a penny stock

IA-4741 In the Matter of Donald J. Lester
Lester, through his management of Rubicon, negligently caused CFI to purchase assets from another entity managed by Rubicon without consulting any third party or following any accepted valuation methodology in determining the price; failed to disclose potential conflicts of interest as to the transaction, and that his conduct contradicted representations in the CFI offering memorandum that any related transactions would be conducted on an arms-length, fair market value basis and that CFI would invest in cash flow-producing assets.
Barred from association for 5 years

IA-4740 In the Matter of Steven V. McClatchey
Insider trading
Barred from association and barred from participating in any offering of a penny stock

Observations from Cybersecurity Examinations
OCIE National Exam Program Risk Alert
Summary of observations from OCIE's examinations conducted pursuant to the Cybersecurity Examination Initiative
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

IA-4739 In the Matter of Black Diamond Asset Management LLC and Robert Wilson
Fraud - Registered as an investment adviser, claiming on Form ADV that it held over $583 million in assets under management and at least 26 discretionary accounts. In reality, Black Diamond has never obtained any advisory clients, has never held any assets under management, and has never met the minimum requirements for investment adviser registration with the Commission.
Public hearing ordered.

IA-4736 In the Matter of Cadaret, Grant & Co., Inc.
Failure to disclose conflicts of interest arising from the receipt of 12b-1 fees, marketing support payments, and prepaid advisory fees; failure to seek best execution; compliance failures

IA-4735 In the Matter of Lynn Tilton, Patriarch Partners, LLC, et al
Order Denying Motion to Stay Adminstrative Proceeding

IA-4734 In the Matter of Columbia River Advisors, LLC, Benjamin J. Addink and Donald A. Foy
Failed to Disclose Conflicts of Interest; Custody Rule Violations
Added to the IA Act UnwrappedTM Releases Database and to Risks/Significant Enforcement Cases under Regulatory Database Rule 206(4)-2 Custody

IA-4733 In the Matter of Brian Kimball Case, Bradway Financial, LLC, and Bradway Capital Management, LLC
Violations: Did not qualify for an exemption from registration as an IA; inflated fund's asset valuations; made untrue statements in Form ADV filings; custody rule violations; compliance rule violations; in contracting to earn a performance fee for managing a fund, did not determine that the fund's investors were qualified clients; improper use of fund assets to pay legal fees
Undertakings: will not charge or accept performance fee compensation; will complete 30 hours of compliance training; shall give current and former investors a copy of the Order; shall retain an Independent Compliance Consultant; Case shall not act in a CCO capacity for 3 years; pay a civil monetary penalty of $150,000.
Added to the IA Act UnwrappedTM Releases Database and to Risks/Significant Enforcement Cases under Regulatory Database Rules 203(m)-1, 206(4)-2, 206(4)-7 & 206(4)-8

IA-4732 In the Matter of Paul Edward "Ed" Lloyd, Jr., CPA
Order Rescheduling Oral Argument

IA-4731 In the Matter of Enviso Capital, LLC, Ryan Bowers, and Jeffrey LaBerge, CPA
IA Charged with Overstating the Value of Two Private Funds

IA-4730 In the Matter of KMS Financial Services, Inc.
Failed to Disclose Conflict of Interest Arising from Revenue Sharing Arrangement and Failed to Seek Best Execution

LR-23879 SEC v. Charles A. Banks, IV
Judgment against IA Charged with Defrauding Former NBA Basketball Player

IA-4729 In the Matter of Vincent Puma
Fraud/Ponzi scheme
Barred from association

Case No. 16-15322 ZPR Investment Management Inc. and Max E. Zavanelli v. SEC
Petition for Review of a Decision of the SEC - Petition Granted and Remanded in Part and Denied in Part
Court affirms the SEC's sanctions except those imposed for the violations related to the December 2009 newsletter.
Added to the IA Act UnwrappedTM Enforcement Case Database

Regulation of Investment Advisers by the U.S. Securities and Exchange Commission 
 Robert E. Plaze, Partner, Proskauer Rose, LLC (June, 2017 update)
 Source Documents provided by Brightline Solutions, LLC
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information, and linked to associated rules within the IA Act UnwrappedTM Regulatory Database

IA-4728 In the Matter of Eric David Wanger
Order Denying Application for Consent to Associate

IA-4727 In the Matter of Charles A. Banks, IV
Made material misrepresentations to, and omitted material information from, an investor
Barred from association

IA-4726 In the Matter of Paramount Group Real Estate Advisor, LLC
Settled negligence-based fraud charges stemming from a transaction in which it owed a fiduciary duty to both sides and breached that duty to one side

IA-4725 In the Matter of Landwin Management, LLC and Martin Landis
Unregistered adviser used assets of a proprietary real estate investment fund in a manner not authorized by the Fund’s operating documents

Updates to Mid-Sized Adviser FAQs
DIM Information Update IM-Info-2017-04
Updated FAQs added to IA Act UnwrappedTM Regulatory Database Rule 203A-1 Plain English Description (Eligibility for SEC Registration) IM Info Update added to the Examination Tools Database - 2017 Information

IA-4724 In the Matter of Bantry Bay Capital, LLC and Timothy F. Sexton, Jr.
Charged excessive advisory fees; misappropriated cleint money for personal expenses; made false representations on Forms ADV; improperly registered with the SEC; violated custody, books & records, and compliance programs rules

IA-4723 In the Matter of John Thomas Capital Management Group, LLC, et al
Order Scheduling Oral Argument

IA-4722 In the Matter of Paul Edward Lloyd, Jr., CPA
Order Scheduling Oral Argument

IA-4721 In the Matter of Resilience Management, LLC, Bassem Mansour and George Ammar
IA and Co-CEO improperly borrowed money from three private equity funds and caused the Funds’ general partners to not make timely capital contributions to the Funds; made misleading statements in the Funds’ capital call notices, limited partnership agreements and audited financial statements; made false entries in books and records to cover up the misuse and improper advancement.
 
IA-4720 In the Matter of Bennett Group Financial Services, LLC and Dawn J. Bennett
Stay Order

IA-4719 In the Matter of James A. Windelmann, Sr., and Blue Ocean Portfolios, LLC
Extension Order

LR-23867 SEC v. Strategic Capital Management, LLC and Michael J. Breton
IA Sentenced in Cherry-Picking Scheme
Placed trades through a master brokerage account and then allocated profitable trades to himself while placing unprofitable trades into the client accounts
Sentenced to two years in prison followed by two years of supervised release, ordered to forfeit funds and pay restitution

IA-4718 In the Matter of Serofim Muroff
Misappropriated and misused millions of dollars of funds invested through the EB-5 Immigrant Investor Program
Barred from association

IA-4716 & IA-4717 In the Matters of Mark C. Northrop, CPA
Offering fraud - secretly charged investors undisclosed fees of either 40% or 50% of the trading profits over-and-above the disclosed fees; made material misrepresentations to investors
Northrop is suspended from appearing or practicing before the Commission as an accountant and is barred from association

IA-4715 In the Matter of James A. Winkelmann, Sr., and Blue Ocean Portfolios, LLC
Order Granting Leave to Adduce Additional Evidence

IA-4714 In the Matter of Paul Leon White, II
Order Granting Motion to Extend Time to Re-File Brief; Denying Reconsideration Request; and Denying Motion for Leave to Make Future Extension Motion

Public Comments from Retail Investors and Other Interested Parties on Standards of Conduct for IAs & BDs
Speech by SEC Chairman Jay Clayton
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

Form ADV FAQs - updated
Updated in the IA Act UnwrappedTM Regulatory Database Registration Rules (203-1 to 203-3) and Form ADV Amendments Rule (204-1) - Disclosure & Recordkeeping Tabs

IA-4713 In the Matter of Abida Khan
Fraud
Barred from association

Macquarie Capital (USA) Inc.
No-Action Request under Rule 206(4)-3
Added to the IA Act UnwrappedTM No-Action Letter Database and to the No-Action Tab under Regulatory Database Rule 206(4)-3 Cash Solicitation

IA-4712 In the Matter of Marc D. Broidy
Misappropriated investor funds
Barred from association

IA-4711 In the Matter of Ronald J. Fernandes
Failed to disclose material conflicts of interest resulting in additional advisory  fees
Barred from association

IA-4710 In the Matter of Laurence I. Balter, d/b/a Oracle Investment Research
Fraud and multiple breaches of fiduciary duty, cherry-picking, misrepresented management fees, caused fund to deviate from its fundamental investment limitations
Barred from association and ordered to pay disgorgement, prejudgment interest, and a civil penalty of $50,000

IA-4709 In the Matter of Paul Leon White, II
Extension Order - Motion to exceed the word limitation for his opening brief is denied

LR-23847 SEC v. Momentum Investment Partners LLC and Ronald J. Fernandez
Final Judgments against IA & CEO for Failure to Disclose Fees to Clients

LR-23845 SEC  v. William J. Wells and Promitor Capital Management LLC
SEC  Obtains Judgment against and Imposes Industry Bar for Securities Fraud

LR-23843 SEC  v. Francisco Illarramendi, et al
Final judgment against former fund manager for perpetrating a years-long scheme to defraud investors, resulting in hundreds of millions of dollars in losses. Currently serving a sentence of 13 years in federal prison after his guilty plea and criminal conviction in a parallel case.

LR-23842
SEC v. Gustavo A. Guzman
Former Trading Instructor Charged with Defrauding Private Fund Investors

IA-4708 In re: Pending Administrative Proceedings
Stay for Administrative Proceedings in Light of Bandimere v. SEC Decision

LR-23837 SEC  v. Murakami, et al.
Hedge Fund Manager Charged with Ponzi Scheme & Fraud

IA-4707 In the Matter of William J. Wells
Securities fraud
Barred from association

IA-4706 In the Matter of Christopher M. Gibson
Order Granting Motion to Strike and Modifying Briefing Schedule

Cybersecurity: Ransomware Alert  
OCIE National Exam Program Risk Alert

U.S. Dept. of Homeland Security Alert TA17-132A - Indicators Associated with WannaCry Ransomware
U.S. Computer Emergency Readiness Team (US-CERT)
Alerts added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

1112 Partners, LLC - Exemptive Request
Amended Exemptive Request under Rule 202(a)(11)(G)-1, the Family Office Rule
Added to IA Act UnwrappedTM Regulatory Database Rule 202(a)(11)(G)-1 No-Action/Exemptive Request Tab

LR-23834 SEC  v. Mohamud Abdi Ahmed and 2waytrading, LLC
Fraudulent Conduct by Recidivist and Unregistered Investment Adviser Firm

IA-4705 In the Matter of Barclays Capital Inc.
Misrepresented the due diligence it performed of certain third-party managers in its wrap fee programs; Forms ADV contained material misstatements; charged fees and received revenues that were inconsistent with what it disclosed; and compliance failures
Among other undertakings, Barclays will make a remediation payment of over $3.5 million, and disgorgement, prejudgment interest and a civil monetary penalty totaling over $93 million
Added to IA Act UnwrappedTM Releases Database and linked to the term "wrap fee programs" in the Glossary & Definitions Database

IA-4704 In the Matter of Frederick Eugene Monroe, Jr.
Convicted of Grand Larceny, currently incarcerated; while associated with Voya Financial Advisors, stole property from two individuals.
Barred from association and barred from participating in any offering of a penny stock

IA-4703 In the Matter of James A. Winkelmann, Sr., and Blue Ocean Portfolios, LLC
Order Granting Petitions for Review and Scheduling Briefs

IA-4698 Technical Amendments to Form ADV and Form ADV-W
FINAL RULE - Effective July 1, 2017

IA-4702 In the Matter of Source Financial Advisors, LLC and Michelle M. Smith
Sanctions for Misrepresenting Degree and Certification

IA-4701 In the Matter of Tellone Management Group, Inc. and Dean C. Tellone
Firm didn't always follow the practice for trade allocation that it described in its Form ADV filings.

IA-4700 In the Matter of PA Fund Management, LLC, PEA Capital, LLC and PA Distributors, LLC
IA-4699 In the Matter of PA Fund Management, LLC, et al
SEC accepts successor's Offers of Settlement proposing to modify an SEC 2004 Order to relieve them of certain obligations

IA-4697 Amendments to Investment Advisers Act Rules to Reflect Changes Made by the FAST Act
Proposing Release
The SEC is proposing to amend the definition of a venture capital fund (rule 203(l)-1) and the private fund adviser exemption (rule 203(m)-1) under the Advisers Act in order to reflect changes made by the Fixing America’s Surface Transportation Act of 2015 (“FAST Act”).
Comments are due by June 8, 2017.

IA-4696 In the Matter of Calvert Investment Distributors, Inc. and Calvert Investment Management, Inc.
Firms Charged for Improperly Using Mutual Fund Assets to Pay Distribution Fees and Other Expenses

IA-4695 In the Matter of William Blair & Company, LLC
Mutual Fund Advisory Firm Charged with Payment Errors and Disclosure Failure

LR-23922 SEC v. Mark J. Varacchi, et al.
Hedge Fund Ponzi Scheme

IA-4691 In the Matter of Michael L. Silver
Order Granting Consent to Associate

IA-4694 In the Matter ov Abida Khan
In criminal case, convicted of securities fraud and investment adviser fraud
Public hearing ordered

IA-4693 In the Matter of Yul L. Pinto Ayala
In criminal case, convicted of securities fraud - misappropriated client funds
Barred from association

IA-4692 In the Matter of Bennett Group Financial Services, LLC and Dawn J. Bennett
Respondents’ motion for leave to file a supplemental brief regarding Bartko v. SEC is denied

IA-4690 In the Matter of Christopher M. Gibson
Order Denying Motion to Stay Administrative Proceeding

IA-4689 In the Matter of Christopher M. Gibson
Order Granting Extension of Time

IA-4688 In the Matter of Mark J. Varacchi
Pled guilty to securities fraud
Barred from association

Form ADV and Investment Advisers Act Rules - A Small Entity Compliance Guide
SEC updated version added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

Umbrella Registration
Term has been added to the IA Act UnwrappedTM Glossary & Definitions Database

IA-4687 In the Matter of Paul Leon White, II
Order Granting Motion to Extend Time to File Briefs

IA-4677 Regulatory Flexibility Agenda

IA-4686 In the Matter of Mark D. Holt
Defrauded customers
Barred from association

IA-4685 In the Matter of Anthony G. Sciarra
Fraudulent investment scheme; misappropriated investor funds
Barred from association and barred from participating in any offering of a penny stock

IA-4684 In the Matter of Travis A. Wetzel
Misappropriated funds from an elderly customer
Barred from association and barred from participating in any offering of a penny stock

IA-4683 In the Matter of Clayton A. Cohn
Fraud; made false and misleading statements to investors when soliciting investments, misappropriated investor proceeds, and covered up trading losses by providing investors with false account statements
Barred from association

IA-4682 In the Matter of Robert N. Tricarico
In criminal case, sentenced to prison for fraud
Tricarico wrote numerous checks from an elderly client's bank accounts to himself; these funds came from the client's inheritance and liquid assets, and from a reverse mortgage on E.A.’s home that Tricarico helped obtain; used the funds for personal use; pawned coins belonging to the client for personal use.
Barred from association and barred from participating in any offering of a penny stock

IA-4681 In the Matter of The Jeffrey Company
IA-4680 In the Matter of Katahdin Asset Management LLC
Orders Granting Exemptions under Advisers Act §202(a)(11)(H)

IA-4678 In the Matter of Credit Suisse Securities (USA) LLC
Breaches of fiduciary duty, inadequate disclosures, and deficiencies in compliance policies and procedures, failure to obtain best execution
Ordered to pay disgorgement and prejudgment interest, and a civil monetary penalty of $3,275,000

IA-4679 In the Matter of Sanford Michael Katz
Failed to Obtain Best Execution for Client Mutual Fund Transactions
Must pay disgorgement, prejudgment interest and a civil monetary penalty of $850,000

IA-4676 In the Matter of Bennett Group Financial Serivces, LLC and Dawn J. Bennett
OPINION of the Commission
Former IA and its founder, majority owner, and CEO made material misstatements and omissions regarding assets under management and investment returns; failed to adopt and implement policies and procedures reasonably designed to prevent securities law violations.
Individual barred, cease-and-desist order imposed, and ordered to pay disgorgement with prejudgment interest and civil money penalties.

Regulation of Investment Advisers by the U.S. Securities and Exchange Commission 
Robert E. Plaze, Partner, Proskauer Rose, LLC (March, 2017 update)
Source Documents provided by Brightline Solutions, LLC
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

IA-4675 In the Matter of Thomas H. Caniford
In criminal case, pled guilty to a 135 count indictment, including prohibited securities acts, unregistered sales of securities, fraudulent sales of securities, and grand theft. Sentenced to a prison term of 12 years, currently incarcerated.
Barred from association and barred from participating in any offering of a penny stock.

LR-23795 SEC v. Clayton A. Cohn, et al
Final Judgment

LR-23794 SEC v. Daniel H. Glick, et al
TRO & Asset Freeze in Investment Scheme Involving Seniors

IA-4674 In the Matter of Harding Advisory LLC and Wing F. Chau
Partial Stay Order

IA-4673 In the Matter of Alison, LLC and Stephen D. Alison
Advisers Act
§§204(a); 206(2) & 207 violations
Failed to produce books & records; made false disclosures and material omissions on Forms ADV; failed to disclose deteriorating financial condition; For three years, Alison is barred from association and barred from participating in any offering of a penny stock
Alison, LLC's IA registration is revoked

IA-4671 In the Matter of Timothy S. Dembski
OPINION of the Commission
Committed fraud by making material misrepresentations to advisory clients when recommending and selling highly speculative investments in a private hedge fund
Barred from association, barred from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and barred from participating in any offering of a penny stock; ordered to disgorge $363,784.66 and prejudgment interest and pay a civil monetary penalty of $300,000.

IA-4670 In the Matter of William D. Bucci
Convicted of securities fraud, mortgage fraud and tax fraud
Public hearing ordered

IA-4669 In the Matter of David P. Hobson
Insider trading
Barred from association and barred from participating in any offering of a penny stock

IA-4668 In the Matter of Warren D. Nadel
Fraud
Public hearing ordered

IA-4667 In the Matter of Paul Leon White, II
Order Granting Petition for Review & Scheduling Briefs

Update for Advisers Relying on Unibanco No-Action Letters
Investment Management Information Update IM-Info-2017-03
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

IA-4666 In the Matter of Jeremy S. Hixson
Bankruptcy fraud; made false statements to the Commission
Barred from association and barred from participating in any offering of a penny stock

IA-4665 In the Matter of Stifel, Nicolaus & Company, Incorporated
Failure to adopt and implement adequate policies and procedures to track and disclose trading away practices by certain of the sub-advisers participating in Stifel’s wrap fee programs.
Civil monetary penalty of $300,000

IA-4664 In the Matter of Aaron R. Parthemer
Advisers Act
§§206(1) & (2) violations
Fraud - Sold unregistered illiquid securities; misrepresented and omitted material information; emailed clients without preserving copies
Barred from association and barred from participating in any offering of a penny stock

IA-4663 In the Matter of Michael J. Breton
Advisers Act
§§206(1) & (2) violations
Fraud
Barred from association

IA-4662 In the Matter of Patrick Churchill
Misappropriated investor funds

IA-4661 In the Matter of Voya Financial Advisors, Inc.
Failed to Disclose Mutual Fund Service & Administrative Service Fees from the Clearing Broker
Must provide copy of Order to clients, comply with disclosure obligations, including providing a notification of this Order in the Item 2 “Material Changes Since Last Annual Update” section of any brochure required under Rule 204-3.
Pay disgorgement of $2.6 million, prejudgment interest and civil monetary penalty of $300,000

IA-4660 Katahdin Asset Management LLC
IA-4659
The Jeffrey Company
Notices of Applications for Exemptive Orders declaring the Applicants to be persons not within the intent of Section 202(a)(11) of the Advisers Act, which defines the term “investment adviser.”

IA-4658 In the Matter of James Michael Murray
Order Dismissing Review Proceeding and Notice of Finality

IA-4657 In the Matter of Christopher M. Gibson
Order Granting Petition for Review and Scheduling Briefs

IA-4656 In the Matter of Shreyans Desai
OPINION of the Commission

IA-4655 In the Matter of Walter V. Gerasimowicz
Extension Order

IA-4654 In the Matter of John Austin Gibson, Jr.
Fraudulently solicited investor funds and used the moher for personal use; mailed false and fraudulent account statements and checks and money orders for “withdrawals” from the non-existent accounts
Public hearing ordered

IA-4653 In the Matter of Lee P. Vaccaro
Defrauded investors, sold unregistered securities, made false statements, misappropriated investor funds
Barred from association

Robo-Advisers  
IM Guidance Update 2017-02 (February 23, 2017)
Substance & presentation of disclosure; obligation to obtain information from clients to support the robo-adviser’s duty to provide suitable advice; and adoption and implementation of effective compliance programs reasonably designed to address particular concerns relevant to providing automated advice
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information and to the Risks & Testing Tabs under Regulatory Database Rule 204(4)-7: Compliance Programs

Inadvertent Custody: Advisory Contract Versus Custodial Contract Authority   
IM Guidance Update 2017-01 (February 21, 2017)
Added to the IA Act UnwrappedTM Examination Tools Database 2017 Information and to the Plain English Description & Disclosure Tabs under Regulatory Database Rule 206(4)-2

SEC Staff Responses to Questions about the Custody Rule 
Revision to Custody Rule FAQ 11.4
Added to the IA Act UnwrappedTM Examination Tools Database 2017 Information and to the Plain English Description & Disclosure Tabs under Regulatory Database Rule 206(4)-2

Investment Adviser Association
No-Action Request under Rule 206(4)-2 the Custody Rule
Request for interpretive guidance or no-action relief regarding certain standing letter of authorization arrangements (SLOA)
Added to the IA Act UnwrappedTM No-Action Database and to the No-Action Tab under Regulatory Database Rule 206(4)-2
The term "Standing Letter of Authorization (SLOA) Arrangement" added to the Glossary & Definitions Database

IA-4562 In the Matter of Christopher M. Cunningham
Solicited investor funds for personal use
Barred from association, and barred from participating in any offering of a penny stock

IA-4651 In the Matter of Jay T. Comeaux
Order Making Findings & Imposing Disgorgement and Civil Penalties

IA-4650 In the Matter of James S. Tagliaferri
OPINION of the Commission
Former principal of registered investment adviser was convicted of investment adviser fraud, securities fraud, wire fraud, and Travel Act violations. Held, it is in the public interest to bar him from associating with any broker, dealer, investment adviser, or investment company, and from participating in a penny stock offering.

IA-4649 In the Matter of Morgan Stanley Smith Barney, LLC
Advisers Act
§206(4) and Rule 206(4)-7 violations
Did not adequately implement its policies and procedures to ensure that clients understood the risks involved with purchasing inverse ETFs; failed to obtain from several hundred clients a signed client disclosure notice, which stated that single inverse ETFs were typically unsuitable for investors planning to hold them longer than one trading session unless used as part of a trading or hedging strategy; failed to follow through on another key policy and procedure requiring a supervisor to conduct risk reviews to evaluate the suitability of inverse ETFs for each advisory client
Ordered to pay a civil monetary penalty of $8 million
Added to the IA Act UnwrappedTM Releases Database and to the Risks/Significant Cases Tab under Regulatory Database Rule 206(4)-7

IA-4548 In the Matter of Sylvester King. Jr.
Advisers Act
§§206(1) & (2) violations - fraud
Sold over $5 million of unregistered, illiquid securities in an internet branding company - this conduct occurred outside and independent of his employment with registered BDs; misrepresented and omitted material information about the investments and presented it  without conducting any due diligence or verification; used his personal communication devices and emails to communicate with his brokerage customers and others about firm business without preserving copies
Public hearing ordered

IA-4647 In the Matter of Jeffrey Slocum & Associates, Inc., and Jeffrey S. Slocum
IA disseminated marketing materials to clients and prospective clients containing misleading performance data; misstatements regarding the firm’s acceptance of items of value from investment managers; and misstatements about the firm’s enforcement of its Code of Ethics.; books and records violations; compliance program violations
Ordered to pay a civil monetary penalty of $300,000
Added to the IA Act UnwrappedTM Releases Database and to the Risks/Significant Cases Tab under Regulatory Database Rules 204-2, 206(4)-1 & 206(4)-7

IA-4646 In the Matter of Brett Thomas Graham
Order scheduling briefs

IA-4645 In the Matter of Thomas A. Guerriero
Engaged in unregistered stock offerings, made material misrepresentations and omissions to investors, ran a boiler room, and used other deceptive tactics to sell stock to unaccredited and unsophisticated investors; In criminal case, sentenced to prison and ordered to pay restitution of $6,600,000
Barred from association

Five Most Frequent Compliance Topics Identified in OCIE Exams of IAs
OCIE National Exam Program Risk Alert
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information, and to the RISKS Tabs under Regulatory Database Rules 204-2, 204A-1, 206(4)-2 & 206(4)-7

IA-4644 In the Matter of Gregg D. Caplitz
Fraudulently induced clients to entrust their savings, investments and other funds to him by falsely representing that those funds would be invested and managed for the clients’ benefit, but instead he diverted some of those funds to his and others’ uses and then tried to lull his clients into allowing him to continue to control the clients’ investments.
Barred from association

IA-4643 In the Matter of Rosalind Herman
Fraudulently induced her investment clients to loan money to her and others, diverted clients’ funds for her and others’ uses, and lulled her clients into allowing her to continue to control the clients’ investments by fraudulent means.
Public hearing ordered

IA-4642 In the Matter of Brown Advisory LLC
Order granting exemption under Rule 206(4)-5
Added to the IA Act UnwrappedTM Releases Database and to the No-Action Tab under Regulatory Database Rule 206(4)-5, Pay to Play

IA-4641 In the Matter of SLRA Inc., and Scott M. Landress
Private equity adviser permanently barred from the securities industry and ordered to pay a $1.25 million penalty to settle charges that he withdrew improper fees from two private equity funds he managed

IA-4640 In the Matter of Aaron Nash Kazinec
Fraud
Barred from association

IA-4639 In the Matter of Karl E. Hahn
Failed to disclose conflicts of interest - undisclosed commissions; made material misstatements and concealed information from the NH Bureau of Securities
Barred from association and barred from participating in any offering of a penny stock

IA-4638 In the Matter of Thomas H. Caniford
In Ohio, pled guilty to a 135 count indictment - in State of Ohio v. Thomas Howard Caniford. The charges included prohibited securities acts and theft. Sentenced to a prison term of 12 years, followed by post-release control, and is currently incarcerated.
Public hearing ordered

Orders requesting additional briefings:
IA-4637 In the Matter of Walter V. Gerasimowicz
IA-4636 In the Matter of Everett C. Miller
IA-4635 In the Matter of Russell K. Cannon
IA-4634 In the Matter of Jon Harvey Deal
IA-4633 In the Matter of Michael H. Johnson
IA-4632 In the Matter of Glen Allan Galemmo

Private Fund Statistics (Q2 2016) 
Staff of the Division of Investment Management’s Risk and Examinations Office (REO),
(posted Jan. 17, 2017)
Added to the IA Act UnwrappedTM Examination Tools Database/2017 Information and to the Plain English Description Tab under Regulatory Database Rule 204(b)-1

LR-23738 SEC  v. Varacchi, et al.
Charged with stealing investor funds and operating a Ponzi scheme

IA-4631 In the Matter of George Charles Cody Price
OPINION of the Commission
Defrauded investors by making material misrepresentations and omissions to investors regarding risks, rates of return, assets under management, and his background - appealed ALJ Initial Decision
Held - it is in the public interest to bar Price from association

IA-4630 In the Matter of GL Investment Services, LLC
Misappropriated assets
Public hearing ordered

IA-4629 In the Matter of GL Capital Partners, LLC
Defrauded investors - misappropriated funds to make about fictitious loans to third party borrowers, then falsely reported those fictitious loans as assets of the Fund, when the proceeds of the fictitious loans had been used for personal expenses

IA-4628 In the Matter of Anthony Tyrone Jones, Jr.
Initial Decision has become final

IA-4627 In the Matter of Harvey Altholtz
Fraud - made materially misleading statements to current and potential investors and omitted to state certain material facts
Barred from association

LR-23727 SEC v. Strategic Capital Management, LLC, et al
Cherry-Picking Scheme
IA agreed to be banned from the securities industry after the agency uncovered an illegal cherry-picking scheme through its data analysis used to detect suspicious trading patterns

LR-23728 SEC v. Michael L. Cohen and Vanja Baros
Former Och-Ziff Executives Charged with FCPA Violations

IA-4626 In the Matter of Citigroup Global Markets, Inc.
Advisory clients were overcharged approximately $18 million in unauthorized fees because Citigroup failed to confirm the accuracy of billing rates entered into its computer systems in comparison to fee rates outlined in client contracts, billing histories, and other documents.  Citigroup also improperly collected fees during time periods when clients suspended their accounts.  The billing errors occurred during a 15-year period, and the affected clients have since been reimbursed.
Citigroup must pay disgorgement and interest, and a $14.3 million civil monetary penalty

IA-4625 In the Matter of Palestra Capital Management, LLC
Reg M Rule 105 violations
Sold stock short in a fund it manages and then, within the rule’s five-day restricted period, acquired shares of the same stock in an offering
Ordered to pay disgorgement of $93,000 plus interest, and a civil monetary penalty of $80,000

IA-4624 In the Matter of Hans Peter Black and Interinvest Corporation, Inc.
Defrauded clients by failing to disclose conflicts of interest
Public hearing ordered

IA-4623 In the Matter of Jan E. Helen
Misappropriated investor funds
Barred from association; prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and barred from participating in any offering of a penny stock; ordered to pay a civil monetary penalty of $45,000

IA-4622 In the Matter of Geoffrey J. Block
Improperly directed payments that were owed to two advisory clients to other accounts in which he had an interest
For three years, barred from association; prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and barred fromparticipating in any offering of a penny stock; Ordered to pay a civil monetary penalty of $100,000

IA-4621 In the Matter of Ane Plate
In Florida, pled guilty to one count of Theft, Embezzlement, or Misapplication by a Bank Officer or Employee
Plate admitted she used her position as a financial advisor to make unauthorized sales of securities from elderly clients’ investment account; she then used those funds for her own benefit.
Barred from association and barred from participating in any offering of a penny stock

IA-4620 In the Matter of Bob Brakeman Enterprises, LLC and Robert D. Brakeman
Advisers Act
§§203A(a), 204, 206(4) and 207 violations
Rule 204-2 & 206(4)-2 violations
Knowingly Misrepresented the Location of Firm's Principal Office and Place of Business
Had No Basis for Registering with the Commission as an Investment Adviser
Had Custody of Client Assets, but Failed to Arrange a Surprise Verification of Client Assets by an Independent Public Accountant
Misrepresented Material Facts in Form ADV Filings
Failed to Maintain Required Books & Records
Brakeman is barred from association and ordered to pay a $25,000 civil monetary penalty

IA-4619 In the Matter of Susan M. Diamond
Advisers Act §207 violations
CCO made untrue statements in Form ADV filed on behalf of an exempt reporting adviser, which the SEC sued for, among other things, allegedly perpetrating a multi-million dollar fraud and misappropriating investor funds.
Suspended for 9 months, then subject to other conditions and limitations on her activities, ordered to pay a $15,000 civil monetary penalty

Form PF FAQs
Updated by the Division of Investment Management

Updated in IA Act UnwrappedTM Regulatory Database Rules 203(m)-1 & 204(b)-1

IA-4618 In the Matter of Gregory W. Gray, Jr.
Misused and misappropriated investor funds; gave false testimony before the Commission
Barred from association

Firms Violated Pay to Play Rule
Penalties Range from $35,000 to $100,000
IA-4617 In the Matter of Adams Capital Management
IA-4616 In the Matter of Aisling Capital
IA-4615 In the Matter of Commonwealth Venture Management Corporation
IA-4614 In the Matter of Alta Communications
IA-4613 In the Matter of Cypress Advisors
IA-4612 In the Matter of NGN Capital
IA-4611 In the Matter of Lime Rock Management
IA-4610 In the Matter of FFL Partners
IA-4609 In the Matter of The Banc Funds Company
IA-4608 In the Matter of Pershing Square Capital Management
Added to the IA Act UnwrappedTM Release Database and to Risk/Significant Cases under Regulatory Database Rule 206(4)-5

IA-4607 In the Matter of Morgan Stanley Smith Barney, LLC
$13 Million Penalty for Overbilling Clients and Violating Custody, Books and Records & Compliance Program Rules
Inadvertently Overcharged Fees; Failed to Obtain Annual Surprise Custody Examinations; Failed to Maintain and Preserve Certain Books and Records; Failed to Adopt and Implement Written Policies and Procedures
Undertakings include fee billing, books and records, and notices to advisory clients; a civil monetary penalty of $13 million
Added to the IA Act UnwrappedTM Releases Database and to Risks/Significant Cases under Regulatory Database Rules 206(4)-2; 206(4)-7 & 204-2

IA-4606 In the Matter of Steven R. Markusen and Jay C. Cope
Initial Decision has become final

IA-4605 Brown Advisory LLC; Notice of Application
Exemption requested under Rule 206(4)-5(e), the Pay to Play Rule
Added to the IA Act UnwrappedTM Releases Database and to Regulatory Database Rule 206(4)-5 No-Action Tab, Exemptive Requests

OCIE National Exam Program - Exam Priorities for 2017
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information

 

Headline News

SEC Proposes Rules to Implement FAST Act Mandate to Modernize and Simplify Disclosure
Read more...

Update on Review of SEC's 2016 Cyber Intrusion
Read more...

SEC Provides Regulatory Relief and Assistance for Hurricane Victims
IAs in affected areas receive Form ADV filing & written disclosure statement relief
Read more...

OCIE “On Track to Deliver a 30% Increase” in IA Exams
15% of All IAs to be Examined This Fiscal Year
Read more...

Updates

Brightline Solutions updates IA Act UnwrappedTM on a daily basis. Recent updates are listed below. Click HERE for a more detailed summary of the information.

IA-4796 In the Matter of Brandon P. Long

IA-4795 In the Matter of Jeffrey S. Preston

IA-4794 In the Matter of Paul Edward "Ed" Lloyd, Jr., CPA

IA-4793 In the Matter of Mark Megalli

IA-4791 FAST Act Modernization and Simplification of Regulation S-K
Proposing Release added to the IA Act UnwrappedTM Releases Database
Proposed revisions reflected in IA Act UnwrappedTM Regulatory Database Rule 0-6

IA-4792 In the Matter of Sam Sadeghi

IA-4790  In the Matter of Danny S. Hood

IA-4789 Semi-Annual Regulatory Flexibility Agenda

IA-4788 In the Matter of Paul Edward "Ed" Lloyd, Jr., CPA

IA-4787 In the Matter of John Austin Gibson, Jr.

IA-4786 In the Matter of GL Capital Partners, LLC and GL Investment Services, LLC

IA-4785 In the Matter of William D. Bucci

LR-23961 SEC v. Richard G. Cody

IA-4784 In the Matter of Edward D. Jones & Co., L.P. - Exemptive Order

LR-23959 SEC v. Tweed Financial Services, Inc. et al

IA-4783 In the Matter of Paul Leon White, II

IA-4782 In the Matter of Jeffrey Timothy Kluge

IA-4781 In the Matter of Perry H. Beaumont

IA-4780 In the Matter of SIX Financial Information USA, Inc.

LR-23951 SEC  v. Tarek D. Bahgat, Lauramarie Colangelo, and WealthCFO LLC

Information Regarding Regulatory Relief for Hurricane Victims
Added to the IA Act UnwrappedTM Regulatory Database - Rules 204-1 and 204-3 Disclosure & Recordkeeping Tabs

ID-1182 In the Matter of Lynn Tilton; Patriarch Partners, LLC. et al

IA-4779 In the Matter of Avaneesh Krishnamoorthy

Testimony on Oversight of the SEC  
SEC Chairman Jay Clayton - Before the Senate Committee on Banking, Housing and Urban Affairs
Added to the IA Act UnwrappedTM Examination Tools Database - 2017 Information