WASHINGTON (Sputnik) — The United States filed fraud charges against the former president of a financial advisory firm for allegedly stealing funds from client accounts, US Securities and Exchange Commission (SEC) announced in a statement on Monday.
“The Securities and Exchange Commission today announced fraud charges against a Washington D.C.-based investment advisory firm’s former president accused of stealing client funds,” the SEC statement read.
SEC is accusing former SFX Financial Advisory Management Enterprises president Brian Ourand with misusing his “discretionary authority and control” over several of his clients’ accounts.
According to the charges, Ourand allegedly stole about $670,000 over the course of five years by writing himself checks and initiating wire transfers from his clients’ accounts.
Separately, the SEC charged SFX Chief Compliance Officer Eugene Mason with failing to supervise Ourand and “negligently failing” to conduct reviews of cash flows to and from client accounts.
As a result, SFX and Mason have agreed to pay $150,000 and $25,000 penalties, respectively, for “compliance failures and other violations.”
The Securities and Exchange Commission is a US agency that oversees and enforces federal securities laws including regulating the securities industry, the US stock exchange, as well as the country’s electronic securities markets.
