President of Executive Compensation Planners (“ECP”), Hector May, pled guilty last December to stealing $11.5 million from investors in a Ponzi scheme. He has been sentenced to 13 years in prison and ordered to pay $8.4 million in restitution.
Tagged with "RIA"
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New York RIA Head Is Sentenced To 13 Years For Ponzi Scheme, Daughter Indicted
Posted on September 11th, 2019 at 2:58 PM
Schwab Accuses Former Adviser of Soliciting a Client
Posted on September 10th, 2019 at 1:52 PM
Adviser John VanEngelenhoven left his employer, Charles Schwab, to open an RIA that custodies with TD Ameritrade Institutional. Now he faces a FINRA arbitration and preliminary injunction as Schwab accuses him of soliciting at least one of the company’s clients. VanEngelenhoven is among several ex-Schwab advisors who have been taken to court this year over client solicitation.
Smaller Financial Firms Are Taking Actions in a Fight over Who “Owns” the Client Relationship
Posted on August 23rd, 2019 at 3:49 PM
Wirehouses and its advisors currently are at war for the control over clients and their assets. The fight is getting nasty as major broker-dealers are taking legal actions against advisors who leave one firm and join a competitor. Legal actions, including TROs (temporary restraining orders), are intimidating advisors and confusing clients.
Alaska RIAs to Pay Over $400,000 to Settle Charges Related to Recruiting Investors for Fraudulent Fund
Posted on August 7th, 2019 at 3:30 PM
Two Alaska-based registered investment advisors and their firm have agreed to pay more than $400,000 to settle charges related to their recruitment of investors for a real estate fund that was running a multi-million dollar fraud.
E-Trade Begins Picking RIAs for Referrals
Posted on July 18th, 2019 at 2:21 PM
SEC Clarifies RIAs Can Use “Fiduciary” in Customer Relationship Summary
Posted on June 24th, 2019 at 4:32 PM
A change in the introductory language of the Customer Relationship Summary (“Form CRS”) sparked debate this week. The original wording eliminated the word “fiduciary” when describing the Registered Investment Advisor (“RIA”) standard of care owed to the client. RIAs voiced their concerns on Twitter and elsewhere.
SEC Charged North-Carolina’s Financial Adviser with Defrauding Clients by Overcharging Advisory Fees
Posted on June 11th, 2019 at 5:34 PM
The Securities and Exchange Commission (“SEC”) charged a North Carolina financial adviser Stephen Brandon Anderson with defrauding his clients by overcharging asset-based advisory fees by at least $367,000 over two years. Mr. Anderson owned and operated River Source Wealth Management in Waynesville, N.C., between November 2010 and March 2017.
Goldman Sachs Expands Wealth Management Reach by Purchasing United Capital
Posted on May 16th, 2019 at 4:57 PM
In an effort to become a dominant player in the financial advice business, Goldman Sachs Group Inc. has announced that it has agreed to buy United Capital Financial Partners Inc. for $750 million.
Wirehouses Have Seen a Slow Down in Breakaway Brokers in 2019
Posted on May 8th, 2019 at 5:14 PM
The number of financial advisors breaking away from their firms has slowed during the first three months of this year. According to InvestmentNews, only 94 financial advisors have left the wirehouse channel in the first quarter, which is a 36% drop from the 147 breakaways recorded in the fourth quarter of 2018. The stock market correction is cited as one of the main reasons why there has been the lowest breakaway activity since the second quarter of 2017.
SEC Examiners to Focus on How RIAs are Protecting Elderly Clients
Posted on March 13th, 2019 at 11:25 AM
During the IAWatch compliance event in Washington D.C. this month, SEC officials emphasized that examiners will continue to focus on how RIAs serve their senior clients.
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