Bringing you live news and features since 2006 

SEC charges Miami-based adviser with hiding trading losses and diverting client funds

RELATED TOPICS​

The Securities and Exchange Commission has charged a Miami-based investment adviser for defrauding his clients by concealing trading losses and diverting investor funds for personal use.



The SEC alleges that Anand Sekaran and his firm Wasson Capital Advisors fabricated documents showing illusory profits after his trading strategy became unprofitable in 2008 and produced substantial losses for clients.

Sekaran also misused client funds to pay various personal and business expenses, and he collected fees in excess of what he was due under the arrangements he had with clients.

Sekaran and Wasson agreed to resolve the SEC’s charges as well as a parallel criminal action announced today by the US Attorney’s Office for the Southern District of New York.

“An investment adviser’s fiduciary duty applies equally in good times and bad,” says Bruce Karpati, chief of the SEC enforcement division’s asset management unit. “Sekaran breached that duty when he concealed trading losses and misled clients rather than simply admitting that his investment strategy was unsuccessful.”

According to the SEC’s complaint filed in US District Court for the Southern District of New York, Sekaran provided investors with a spreadsheet inaccurately showing that Wasson was profitable. He inflated account balances on some clients’ account statements, using the letterhead of a defunct British Virgin Islands trust company for one client and the letterhead of a New Zealand firm for another client. He misappropriated investor money for personal mortgage and maintenance payments, restaurant and travel expenses, entertainment and event tickets, employee salaries and health insurance, and rent and office expenses.

In settling the SEC’s charges, Sekaran and Wasson consented to a final judgment imposing permanent injunctions from future violations of the anti-fraud provisions of the federal securities laws. Sekaran separately consented to an SEC order barring him from the securities industry and penny stock industry. Sekaran is required to pay USD2.3m to satisfy restitution and forfeiture orders in the criminal matter.

Latest News

The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..
Amundi has reduced its management fees across a wide selection of its ETF range. The firm writes that this move..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD66,675, marking a 4.3..
Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by