SEC Won’t Let Barred Adviser Back into Industry
The SEC denied the request of a barred investment adviser to re-enter the industry because he failed to pay his outstanding penalty and did not sufficiently demonstrate “extraordinary circumstances.” The SEC barred the adviser back in 2011 for misrepresentations and conflicts of interest and fined him $65,000. Because the bar was unqualified, the adviser had a high standard to show how his reinstatement was in the public interest. The SEC rejected his argument that working for another investment adviser would enable him to pay his outstanding fine. The SEC was also not presented with sufficient evidence about enhanced supervision to avoid a future recurrence of his misconduct.
It’s really difficult to get relief from an industry bar, but if you don’t pay your outstanding penalty for nearly a decade, you can pretty much forget it. And, even if you do get current, you will need to show significant supervision and limitations so that the Commission can get comfortable that they are not releasing a recidivist into the wild.