SEC charges California RIA and its owner with account statement fraud

Tweed Investment Services Inc. and owner Robert Russel Tweed were allegedly trying to cover up their inflated investment performance

Oct 4, 2017 @ 5:16 pm

By Greg Iacurci

The Securities and Exchange Commission has charged a California advisory shop, Tweed Investment Services Inc., and its owner with fraud for allegedly issuing false and misleading account statements that inflated investment profitability.

The firm, based in San Marino, Calif., and owner Robert Russel Tweed raised $1.7 million from 24 investors for a fund they managed — the Athenian Fund — but subsequently invested the money in two other investments that ultimately lost roughly $800,000, according to the SEC.

They then concealed the losses by issuing phony account statements that made the fund, which used a quantitative stock trading strategy, appear profitable, and doled out more money to some investors than they were entitled due to the inflated asset values, the SEC alleged in a complaint filed Oct. 2 in California district court.

The complaint, Securities and Exchange Commission v. Tweed Financial Services, Inc. et al, seeks permanent injunctions and civil penalties for the fraud, which the SEC claims Mr. Tweed and his firm perpetuated for years.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What can advisers learn from the first female fighter pilot?

Pressure is pressure. Whether you are taking off from an aircraft carrier or dealing with the unforgiving movements of the market, you need to have a plan. Carey Lohrenz, the world's first female F-14 pilot, has some advice for advisers.

Latest news & opinion

10 most affordable U.S. cities for renters

Here are the U.S. cities that are most affordable for renters, according to Business Student.com, which compared the cost of rent to average salaries.

9 best - new - financial adviser jokes

Scroll through for nine new financial adviser laughs.

Captrust, prominent 401(k) advice firm, ramps up its wealth management business

Captrust wants to grow annual revenue from wealth management to 50% from 30% over the next five years.

Fidelity CEO says zero-fee funds aimed at expanding its universe

Johnson says way to prosper in financial services is 'by building relationships.'

SEC advice rule contains a huge hole

Jay Clayton aims to clear up investor confusion by drawing a distinction between brokers and advisers in the agency's proposed package of revised standards. But where do dual registrants fit?

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print