California Based RIA Charged in Ponzi Scheme

Posted on March 19th, 2015 at 4:57 PM

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has barred a California-based RIA from the industry after the firm was charged with misleading investors - including falsely claiming that its fund was "SEC approved."

According to the SEC, GLR Advisors raised over $60 million by inflating the performance and misrepresenting the strategy of a private investment fund.

Between 2005 and 2011, the firm advertised its "SEC approved" GLR Growth Fund as having returns of 17%-25% during every year of its operation.

GLR's marketing materials claimed the fund was "tied to well-known stock indices such as the S&P 500, Nasdaq and Dow Jones, as well as in oil, natural gas and technology-related companies.”

 But since mid-2009, the fund did not invest in any publicly-traded securities. Instead, funds were placed in "illiquid investments" (two private startups) and also were used to pay back other investors.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: FINRA, SEC, RIA, James Eccleston, Eccleston Law

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Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


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