A federal court in Massachusetts entered final judgments against two relief defendants in a case involving their mother’s business partner, an investment adviser who transferred customer money to them and others instead of investing it.
The court ordered that Brad and Brian Herman — who, as relief defendants, were not accused of wrongdoing, but who received property originally obtained illegally — pay a total of $167,572 and $320,269, respectively, in disgorgement and prejudgment interest.
Their mother, Rosalind Herman, co-owned Insight Onsite Strategic Management, a Wilmington, Mass.-based advisory firm, with Gregg Caplitz, who diverted customer funds to them that were intended for investment. As a result of litigation initiated by the Securities and Exchange Commission in 2013, Caplitz has been barred from the securities industry, pled guilty to criminal charges and was sentenced to 3 1/2 years in jail.
This past February, the SEC voluntarily dismissed its claims against Insight Onsite, which is defunct and whose registration as an investment adviser was cancelled in January 2016.
It also voluntarily dismissed its claims against Rosalind Herman, who was sentenced in a parallel criminal case to seven years in federal prison and ordered to pay $1,819,391 in restitution.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave