A broker-dealer that acted as a repo counter-party to an RIA that the SEC allegedly defrauded clients agreed to pay nearly $2 Million in disgorgement and interest to settle SEC charges.  The SEC charges that the respondent engaged in reverse repo transactions that allowed the RIA to move certain illiquid securities off the RIA’s books in order to dress up its financial statements and thereby reduce disclosed bank borrowing.  The SEC charges that the RIA’s efforts were intended to defraud clients by hiding investments in risky securities.  The SEC alleges that the respondent knew that the transaction was intended to further the fraud.  The SEC brought the enforcement case under its authority (Section 203(k)) to issue a cease-and-desist order against any person that is the cause of another person’s violation of the Advisers Act.