SEC Files Suit Against Advanced Practice Advisors and CEO Paul Spitzer

Posted on January 15th, 2021 at 10:35 AM
SEC Files Suit Against Advanced Practice Advisors and CEO Paul Spitzer

From the Desk of Jim Eccleston at Eccleston Law LLC:

The U.S. Securities and Exchange Commission (“SEC”) has filed a lawsuit against Advanced Practice Advisors, LLC (“APA”), a former SEC-registered investment adviser, and the firm’s CEO, Paul C. Spitzer. The lawsuit alleges that Paul Spitzer allowed the father of an APA registered representative to advise firm clients despite the fact that the advisor’s father was not formally associated with APA. Without admitting or denying the SEC’s findings, Spitzer and APA agreed to an entry of judgment to settle the case.

According to the SEC, the misconduct at issue took place in 2015. The SEC alleged that an advisor joined APA, but APA refused to associate with the advisor’s father due to an ongoing FINRA investigation. However, the advisor allowed his father to advise APA clients. According to the SEC, APA and Spitzer knew or should have known that the advisor’s father was advising APA clients despite the fact that he was not associated with APA. The SEC alleged that APA and Spitzer should have known what was happening because the son was inexperienced, had no clients of his own, and shared an office with his father, who was an experienced advisor. The SEC found that APA and Spitzer failed to disclose to clients that the advisor’s father was not formally associated with APA, and failed to supervise the associated advisor.

As part of the settlement, Spitzer will pay a $20,000 civil penalty and consented to cease-and-desist order and certain undertakings. APA agreed to the entry of a cease-and-desist order, a censure, and certain undertakings.

Tags: eccleston, eccleston law, sec, apa, paul spitzer

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

April 25, 2024
B. Riley Financial Clears Air Amid Allegations, Stock Surges

Amidst swirling speculation regarding its connections with a client linked to the Prophecy Asset Management collapse, B. Riley Financial Inc. has conducted an internal
review, concluding no affiliations with the defunct hedge fund.

April 24, 2024
RIA Insurance Claims Skyrocket

A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.

April 23, 2024
Surge Predicted in Regulation Best Interest Cases

According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.