SEC Charges Two North Carolina Advisors Over Alleged $75 Million Fraud

Posted on September 16th, 2022 at 2:09 PM
SEC Charges Two North Carolina Advisors Over Alleged $75 Million Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged two North Carolina-based advisors, Gregory Lindberg and Christopher Herwig, with defrauding clients out of at least $75 million through unauthorized trades.

The two advisors, who operated Standard Advisory Services Limited, breached their fiduciary duties to their clients between July 2017 and 2018 by improperly transacting several undisclosed related-party trades that were not in their client’s best interests. According to the SEC, the two advisors misappropriated nearly $57 million in client funds while Standard Advisory generated at least $21.4 million in advisory fees in connection with the schemes.

Lingberg allegedly conducted the schemes by utilizing complex investment structures as well as a web of affiliated entities to conceal the fraud, according to the SEC. The SEC’s complaint is seeking disgorgement plus prejudgment interest, penalties and permanent injunctions.

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

Tags: eccleston, eccleston law, advisors, sec

Return to Archive



Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.


December 9, 2022
FINRA Reminds Firm To Monitor For “Red Flags” In Options Trading Applications

The Financial Industry Regulatory Authority (FINRA) has released an announcement reminding firms that recommend options trading for clients to be constantly monitoring for “red flags” on customer applications.

December 8, 2022
FINRA Orders Morgan Stanley to Pay $697,897 Over Failure to Supervise Nine Advisors

The Financial Industry Regulatory Authority (FINRA) has ordered Morgan Stanley to pay $697,897, including a $200,000 fine and $497,897 in restitution, for failing to adhere to its own procedures for supervising its advisors’ high-risk recommendations. 

December 7, 2022
FINRA Bars Former Northwestern Mutual Advisor For Allegedly Cheating on CFP Exam

The Financial Industry Regulatory Authority (FINRA) has barred a former Northwestern Mutual advisor after he failed to cooperate with the regulator’s probe into the Certified Financial Planner Board of Standards’ (CFP Board’s) decision to bar the advisor for alleged “exam misconduct.”