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

4 secrets to adviser growth; Financial planning

Growing your practice can be difficult, but advisers you aren’t alone. Growth is hard for everyone. John Anderson and Raef Lee of SEI talk about how financial planning can help take your practice from good to great.

Latest news & opinion

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

8 apps advisers love for getting stuff done

We reached out to advisers to find out which apps they are using to run their business more efficiently.

10 tax moves to squeeze in before the year ends

Here are some tax moves clients can still make before year-end.

Richard Neal: the new face driving retirement policy in Washington

As he becomes head of the House Ways and Means Committee, Rep. Richard Neal (D-Mass.) is poised to make some big changes.

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