The Securities and Exchange Commission has barred Howard B. Present, former chief executive of F-Squared Investments, from all segments of the securities industry over which it has direct or indirect regulatory authority.
In an administrative proceeding, the SEC said that Mr. Present, who in March was found liable in a civil case brought by the commission, will not be eligible for reinstatement until he has paid the $12.4 million in disgorgement, interest and penalties that he owes.
In 2014, the SEC sued Mr. Present and said that F-Squared, which at one time was the nation's largest ETF strategist firm, had agreed to pay $35 million and admit wrongdoing to resolve claims it misled investors by falsely advertising the performance of its AlphaSector investment.
At its peak, F-Squared managed more than $28 billion in assets, the SEC said.
The company filed for bankruptcy in 2015, and its investment strategies and management contracts were acquired by Broadmeadow Capital, a subsidiary of Chicago-based Cedar Capital.