Articles Tagged with SEC Enforcement Action Lawyer

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. Continue Reading

The Securities and Exchange Commission (SEC) has filed a suit against Patrick Churchville, and his firm ClearPath Wealth Management (“ClearPath Wealth”) misappropriated and misused his investors’ cash and assets through a fraudulent scheme involving theft that was covered up by false accounting entries, shadow accounts, and misrepresentations to his investors, financial institutions, to third-party administrators, and to ClearPath Wealth’s auditors and accountants.

According to the SEC, Mr. Churchville and his firm, ClearPath Wealth, caused over $11 million in losses to investors of the funds they advised and controlled. The SEC alleged that the defendants misallocated and misappropriated investor assets as part of a Ponzi-like scheme. According to the SEC, the defendants took monies that were due to be distributed to particular investors to pay for new investments to fund distributions to unrelated investors and themselves. The SEC alleged that Mr. Churchville’s home overlooking Narragansett Bay was bought with approximately $2.5 million stolen from investors. Continue Reading