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Day: May 15, 2014

SEC Bars Adviser Who Failed to Disclose Astrology-Based Investment Strategy

The SEC barred from the industry an investment adviser that it alleges failed to disclose that he based his strategy on the lunar cycles and the “gravitational pull between the Earth and the moon.”   The SEC charges that the defendant hid trading losses by delivering false client statements.  The SEC also faults the adviser with making misrepresentations about guaranteed returns and safety of assets and misappropriating client funds.
OUR TAKE: It is very important to fully disclose the investment style utilized to manage client assets.