Enforcement: Advisor Inflated AUM, Stole From Client, SEC Says

They made up a hypothetical portfolio of investments earning 20 to 66% in annual returns and passed it off to investors as real trading. When Mitsakos and Matrix Capital Markets were given $2 million in client assets to manage in September 2015, they proceeded to steal approximately $800,000 from that client and used most of it to pay for unauthorized personal and business expenses.

Among recent enforcement actions, the Financial Industry Regulatory Authority fined Wedbush Securities $1 million for incomplete and inaccurate blue sheet submissions to both FINRA and the Securities and Exchange Commission. Also, the agency fined Kovack Securities for failures on unit investment trusts. In addition, the SEC has settled with a company that violated whistleblower protection laws,…


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