The Securities and Exchange Commission (SEC) last week filed charges against an investment advisory firm and its CEO for unsuitably investing $19 million of retail investor funds, including pension and retirement assets, in speculative investments and reaping large commissions from those securities transactions.
In its civil enforcement action, the SEC claims that Temenos Advisory Inc. and its chief executive officer, George L. Taylor, directed its advisory clients and other investors, which included the elderly, into several high-risk and illiquid private offerings. The SEC further alleged that the investment advisory firm hid from its clients the significant commissions it generated from pushing these speculative private placement investments, which allegedly included cash payments and equity stakes in the private companies being sold. The SEC Complaint also charged that the advisory firm and its principal materially misrepresented to investors the risks involved in the alleged unsuitable investments.
The SEC charged the defendants with violations of the anti-fraud and registration sections of the federal securities laws, and is seeking disgorgement (return of ill-gotten gains), along with interest, civil penalties and injunctive relief.
In this case, according to the SEC’s allegations, the investment advisory firm and its control person not only put their financial interests directly ahead of their investors, but also potentially caused significant investor losses to a particularly vulnerable class (the elderly and retired) — a clear breach of well-established fiduciary duty.
Under the leadership and at the explicit direction of SEC Commission Chairman Jay Clayton, the SEC’s Enforcement Division is increasingly utilizing its limited resources to target investment advisor and stockbroker fraud perpetuated against retail investors, particularly the elderly. This case is yet another example of the SEC’s new enforcement priority.
If you have received an SEC Subpoena or have been contacted by the SEC, it is imperative that you retain an experienced SEC defense attorney to protect your legal rights. SEC defense attorney David Chase previously worked in the SEC’s Enforcement Division and knows how the SEC conducts its investigations and prosecutes its cases, and will vigorously defend your case.
The Law Firm of David R. Chase, an SEC law firm located in South Florida, is run by SEC defense attorney, David Chase, who represents individuals and companies around the nation who are under SEC investigation or prosecution. Contact SEC defense attorney David Chase for a confidential consultation toll-free at: 800-760-0912 or at firstname.lastname@example.org.