A ruling in an
"It's like rolling through a stop sign and you get the death penalty," said
An administrative law judge fined investment manager turned RIA Max Zavanelli
Zavanelli's woes stem from performance data cited in his firm's advertisements.
To be in compliance with voluntary
As a result, the
The footnotes in Zavanelli's ads claimed that he was in compliance with GIPS – an error that Zavanelli has acknowledged.
Zavanelli "was found to have ordered his staff to suppress responsive documents to
In 27 years in business, Snyderburn says, Zavanelli has never had a client arbitration case or even a complaint; ZPR's most recent form ADV, filed in March, says the
After Falcone was found to have used
"He gets a five-year bar," Snyderburn says, "and we run six ads and because we are not GIPS-compliant we are permanently barred."
Zavanelli, who was 67 last year when he testified, frustrated the judge during the 15 hours he spent defending himself, his lawyer says. In the decision, Judge
Zavanelli began his career as an investment manager and, at the request of institutional clients, became an RIA, Snyderburn says.
The judge's decision against Zavanelli also cites a case that the commission brought against him in 1987 involving advertisements. In that instance, Zavanelli had advertised the returns that some of his institutional clients realized after following his advice, Snyderburn says — adding, "The
When testifying last year and asking why he didn't fight the 1987 case, Snyderburn says he client told the
"That was 27 years ago," Snyderburn, who says the
"At the end of the day," Snyderburn says, "even if you don't like a witness's demeanor or if the witness is not deferential, that doesn't mean that you should not focus on what not happened and say we are going to punish you because we don't like your attitude."
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