After agreeing to a $10.2 million penalty last month, California financier Jason Sugarman reached a settlement with the Securities and Exchange Commission that bars him from the securities industry until at least early 2026.
In January, the U.S. District Court for the Southern District of New York ordered Sugarman to pay $10.2 million for his alleged role in a scheme to steal money that was meant to be invested in Native American tribal bonds. Monday, the SEC and Sugarman reached a settlement over the matter, in which he and several others engaged in a scheme to defraud various pension funds out of $43 million, according to the SEC, which filed its initial complaint in 2019.
Sugar is barred from association with any broker, dealer, investment advisor, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, according to the SEC, but has the right to apply for reentry after three years.
Sugarman agreed to the SEC's order without admitting to or denying the agency's findings. He did not return an email on Tuesday from InvestmentNews seeking comment.
Sugarman is not currently registered as a broker or financial advisor, according to BrokerCheck, but in the past was a director and an indirect owner of the defunct broker-dealer and investment advisor Burnham Securities, according to the SEC.
Almost a decade ago, Sugarman and his partner, Jason Galanis, had acquired control of two investment advisory firms so they could use client funds to purchase $43 million of tribal bonds, according to the SEC. While the proceeds were supposed to be invested in annuities that would benefit the tribal corporation and repay bondholders, the SEC alleged that Sugarman and Galanis instead used the money to acquire foreign insurance companies.
Sugarman is a minority owner of the Los Angeles Football Club and the son-in-law of Peter Guber, the owner of the Los Angeles Dodgers.
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