The Commission's complaint alleges that, since at least 2008, Richards, a registered representative of a broker dealer, misappropriated at least
In its complaint, the Commission alleges that Richards instructed investors to write out checks to entities under his control with the understanding that Richards would invest their funds in fixed income assets, variable annuities and/or common stock. The complaint alleges that none of these investments were ever made. None of the investments appeared on the client's brokerage account statements, and Richards received no commission income from these investments. The complaint further alleges that Richards siphoned off the funds entrusted to him for personal use.
The complaint alleges that Richards violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The complaint also alleges that Richards violated Sections 206 (1) and Section 206 (2) of the Investment Advisers Act of 1940 ("Advisers Act"), the antifraud provisions of the Advisers Act.
. SEC Complaint (http://www.sec.gov/litigation/complaints/2013/comp22706.pdf)
TNS rk-130524-JF78-4361787 StaffFurigay
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