Hedge Fund Adviser Barred from the Securities Industry

A recent administrative law proceeding instituted by the SEC has barred an individual from the securities industry — i.e., from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization — and from participating in an offering of penny stock. The decision invoked authority under the Dodd-Frank Act, which provided collateral bars in each of the several statutes regulating different aspects of the securities industry. This securities-wide approach is in contrast to the historical, pre-Dodd Frank practice of industry-specific bars. The proceeding also includes a discussion of several of the factors that are relevant to a SEC sanction determination.

View Order in full here (links externally to SEC website).