SEC Charges Unregistered Investment Advisor For Operating A Decade-Long Scheme

Posted on March 11th, 2021 at 3:16 PM
SEC Charges Unregistered Investment Advisor For Operating A Decade-Long Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission (SEC) charged George Heckler for running a decade-long fraudulent scheme through two private hedge funds. Heckler allegedly formed Cassatt Short Term Trading Fund LP and CV Special Opportunity Fund LP to conceal significant losses incurred by Conestoga Holdings LP, also controlled by Heckler. 

According to the SEC, Heckler transferred Conestoga's underperforming assets to Cassatt and CV and misrepresented the funds' objectives and performance to investors. Heckler told investors that their funds were used to engage in short-term equity trading and that the investments were consistently generating positive returns. In contrast, a substantial number of investors' funds had not been invested at all or had been used to make Ponzi-like payments to prior investors.

The SEC also alleges that Heckler raised at least $90 million in new investor capital through Cassatt, CV, and three other entities he managed. $32 million of the new investor capital raised was used to pay back prior investors. 

Heckler also used over $ 1 million of investor funds for personal use, according to the SEC. Heckler also allegedly concealed these losses from investors by providing them with false account statements showing fabricated gains.

The complaint charges Heckler with violations of antifraud provisions of federal securities laws. Heckler agreed to settle the charges by consenting to a bifurcated judgment that permanently enjoins him from engaging in future violations. Heckler also agreed to a bar from the industry with disgorgement penalties. 

Eccleston Law LLC represents financial advisors nationwide. Feel free to contact us to discuss your situation.


Tags: eccleston, eccleston law, sec charges

Return to Archive



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

John T.


September 29, 2023
Traders Engage in Boom-or-Bust Options in Stock Market

The stock options market is experiencing a surge in activity, as many individual investors are eagerly engaging in trades that expire within hours or days to take advantage of the volatile market swings.

September 28, 2023
Former LPL Affiliate Compliance Chief Suspended by FINRA for Unauthorized $1 Million Transfer

The Financial Industry Regulatory Authority (FINRA) fined and suspended Jeffrey K. Kirkpatrick, a former chief compliance officer at a registered investment advisor previously affiliated with LPL.

September 27, 2023
Former Creative Planning Staff File Lawsuit Challenging Non-Compete Agreements

Four former employees of Creative Planning have filed a lawsuit, alleging that their non-compete agreements with the firm unlawfully restrict their ability to work in the industry.