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

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.