Rosedale Advisory Firm Fined for Role in NCAA Player Referral Bribery Scheme

Posted on April 25th, 2025 at 2:18 PM
Rosedale Advisory Firm Fined for Role in NCAA Player Referral Bribery Scheme

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has finalized a cease-and-desist proceeding against Rosedale, a former SEC-registered investment adviser, for violations of the Investment Advisers Act of 1940. According to the SEC, Rosedale perpetrated a multi-year bribery scheme involving its making undisclosed payments to sports agents and others to steer NCAA athletes toward Rosedale’s advisory services.

From March 2015 through October 2017, Munish Sood, who owned at least 95% of Rosedale and served as its CEO and Chief Investment Officer, orchestrated payments exceeding $96,000 to influence college basketball players to retain Rosedale as their investment adviser once they turned professional. These payments were not disclosed to the athletes before they entered advisory agreements—conduct that violated Sections 206(1), 206(2), 206(4), and Rule 206(4)-3 of the Advisers Act.

Though Rosedale ultimately secured at least five former NCAA athletes as clients through this scheme, the SEC found no evidence of quantifiable harm to those clients or any unjust enrichment by the firm. Accordingly, the SEC believed that a mere fine of $97,523 was an appropriate sanction and deterrence.Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

March 4, 2026
Modern Fraud Schemes Escalate in Scale and Sophistication

A recent panel discussion at the Financial Services Institute OneVoice conference in San Diego highlighted how rapidly evolving fraud schemes continue to victimize both retail and wealthy investors.

March 3, 2026
FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades

The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co.

March 2, 2026
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval.