The Securities and Exchange Commission is taking administrative action against an investment advisor alleged to have engaged in a so-called "cherry-picking" scheme that funneled gains from day trades in an omnibus account into the advisor's personal and business accounts, while saddling clients with the losses from the trades that went sour.

The agency's order initiating administrative proceedings alleges that Noah Myers, president of MiddleCove Capital, netted "ill-gotten gains" of about $460,000, while his clients lost more than $2 million from around October 2008 through February 2011, when an employee threatened to report the activity to the SEC.

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