SEC Rejects Broker’s Efforts to Start RIA While Behind Bars

The U.S. Securities and Exchange Commission has barred David Scott Cacchione from the securities industry once again. Cacchione was banned in 2009 for helping to mastermind a $100 million financial scam. This time, his bar is for attempting to start a registered investment adviser firm while in jail for the previous crime.

卡奇奥（Cacchione）于6月从监狱获释，被判入狱五年，并因认罪而被判处三年监督。securities fraud。该指控涉及在不知情的情况下保证客户的证券，以便为朋友获得超过4500万美元的bob200体育个人贷款。在他使用的钱中，有一个老寡妇和儿童慈善机构。

根据SFGate, in 2007 and 2008 Cacchione, while managing director of Merriman, Curhan, Ford & Co. in San Francisco, gave client brokerage statements to William Del Biaggio III, who doctored them to make it appears as if the securities belonged to him. He did this to secure or renew some $100 million in loans. He used the funds to pay off debt and purchase an ownership stake in the Nashville Predators hockey team.

联邦调查局说，约有4,700万美元损失了。卡奇奥人被命令支付近5000万美元的赔偿金。但是，美国证券交易委员会（SEC）表示，截至2014年8月，他仅支付了502美元。（德尔·比亚乔（Del Biaggio）在对证券欺诈的认罪后被判处八年徒刑，他被命令支付6750万美元的赔偿金。）bob200体育

In April, while still in prison, Cacchione registered Montara Capital Management, of which he was chief compliance officer, a managing member, and owner of over 50% of the firm. After his release, he submitted an application with the U.S. Securities and Exchange Commission seeking approval of Montara, which he said was an RIA in California.

In September, the SEC filed an administrative proceeding to determine if sanctions against Cacchione were warranted for the application. Earlier this year, the regulator issued an order barring him again. This month, California’s department of securities regulation also barred Cacchione from registering as an investment adviser in the state.

The 2009 securities fraud and this latest incident are not Cacchione’s only run-ins with regulators. According to the Financial Industry Regulatory Authority’s broker check database, he was allowed to resign from Smith Barney Shearson in 1994 because the firm was “unhappy” with trading practices in some of his principal accounts. In 2003, he agreed to a 30-day suspension and a $35,000 fine-without denying or admitting culpability-to resolve claims alleging that he sold unregistered securities to customers without providing the proper disclosures while at First Security Van Kasper.

Ourinvestment adviser fraud law firmis here to help investors recoup their losses.

SEC shuts down ex-broker’s attempt to start RIA from jail, InvestmentNews, March 19, 2015

The SEC’s Administrative Proceeding, SEC.gov (PDF)

Securities felon who tried to start investment firm barred, SFGate, March 18, 2015

更多的博客文章:
Over $44M Lost in Alleged Investment Adviser Scam Involving Total Wealth Management, Stockbroker Fraud Blog, March 19, 2015

Bank of New York Mellon Corp. Settles Currency Fraud Lawsuits Involving Pension Funds for $714M, Institutional Investor Securities Blog, March 19, 2015