SEC enforcement

The advisor defrauded some 100 clients by persuading them to invest more than $71 million in 16 private funds offered by his two investment advisory companies, the SEC claims.

Co-chiefs of the SEC’s Division of Enforcement tout a program aimed at repaying investors for excessive mutual fund fees as a new approach to curbing industry abuses.

The funds paid for multiple vehicles, bedroom furniture and debts at casinos, prosecutors say.

The misconduct is so pervasive that the regulator is temporarily allowing violators to come forward.

The trade group cautions that the SEC could outsource advisor oversight due to low examination rates.

While some are mainstays, there are a few new ones to add to the list this year.

The second-largest independent broker-dealer overcharged nearly 1,800 retail retirement accounts, the regulator says.

Investigators say the broker spent his clients’ money on luxury cars and home improvements.

Authorities say the now barred broker concealed his fraud through a variety of methods, including by creating falsified tax forms and lying to accountants.

Regulatory decisions, whistle-blower cases and acquisitions will define wealth management in 2018, and the people here will be the decision-makers who remake the industry.