The Securities and Exchange Commission (SEC) has charged Broidy Wealth Advisors and its owner, Marc D. Broidy, with fraudulently overbilling clients and misappropriating their assets for personal expenses. According to the SEC complaint, Marc Broidy and his Los Angeles-based investment advisory firm allegedly billed his clients approximately $643,000 in excess fees and covered it up by altering management fees on documents before sending them to clients.
Marc Broidy, of Beverly Hills, California, is the Principal and sole owner of Broidy Wealth Advisors. The SEC’s complaint alleges that Mr. Broidy overbilled several clients. In one case, even after they had terminated their relationship with him, Mr. Broidy allegedly deducted an additional $6,000 in fees from one of his client’s accounts. To cover up the alleged overbilling scheme, the complaint notes that Mr. Broidy altered his clients’ 1099 Forms to eliminate or decrease the advisory fees he had allegedly deducted from their accounts. According to the complaint, Mr. Broidy allegedly used fraudulently obtained money, $865,000, to pay his personal expenses such as his mortgage, trips overseas and leases on two Mercedes-Benz’s.
The SEC is charging Mr. Broidy and Broidy Wealth Advisors with allegedly violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934, and Rule 10b-5 of the Investment Advisers Act of 1940. The SEC is seeking permanent injunctions and penalties against Mr. Broidy and his firm, as well as an officer-and-director bar against Mr. Broidy.
Robert Wayne Pearce, a former SEC enforcement attorney, has litigated SEC actions for over 40 years, including, but not limited to, insider trading, stock market manipulation, and other alleged violations of the Federal securities laws. Have you been contacted by the SEC or believe that you may be subject of an investigation? If so, call Mr. Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce defends companies and individuals who may be the subject of an SEC investigation or enforcement action regarding their alleged involvement in securities laws violations.
This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to representing investors and financial industry professionals throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.