The Securities and Exchange Commission has sued KHF Advisor investment firm founder Knox Fuqua for allegedly embezzling money from his clients to pay for personal and business items. The SEC seeks permanent injunctions and an order directing that Fuqua get rid of all the ill-gotten gains and pay civil penalties. 

The complaint alleges that from January 2003 until late 2005, Fuqua engaged in fraudulent activity through KHF Advisors. Fuqua ignored his clients' investments wishes and instead paid for personal expenses--supermarket and pharmacy charges, along with jewelry purchases--totaling over $200,000.

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