SEC charges RIA firm's former COO with overbilling clients and inflating salary

SEC charges RIA firm's former COO with overbilling clients and inflating salary
Agency says Richard Diver's scheme overcharged clients of M&R Capital by $750,000 .
MAR 28, 2019

The Securities and Exchange Commission has filed charges against the former chief operating officer of a New York RIA firm for helping the firm overbill clients as part of a scheme to inflate his own pay. According to the SEC's complaint, between 2011 and December 2018, Richard T. Diver, a former senior vice president of M&R Capital, engaged in an "illicit scheme to steal approximately $6 million from his employer," the SEC said in a release. (More:Chicago-area 'adviser' convicted in $10 million swindle) The agency said that Mr. Diver, whose duties included managing the firm's payroll and client billing functions, allegedly inflated his salary by hundreds of thousands of dollars per year by overbilling more than 300 accounts by approximately $750,000 to generate additional revenue. When confronted by the firm's CEO in December 2018, Mr. Diver confessed to having carried out the scheme, the SEC said. "When the scheme came to light, we took swift action to ensure that there was no further investor harm," said Marc P. Berger, director of the SEC's New York Regional Office. The SEC referred the case to the U.S. Attorney's Office for the Southern District of New York, which separately has announced criminal charges against Mr. Diver.

Latest News

Why financial honesty is key to harmonious relationships
Why financial honesty is key to harmonious relationships

Nearly half of single Americans think their net worth shapes their fate in dating, but the biggest financial green flags tell a different story.

Osaic hit with class action over cash sweep payments
Osaic hit with class action over cash sweep payments

The hybrid RIA is the latest firm to face allegations that it enriched itself at customers' expense by paying unfairly low interest rates in its cash sweep programs.

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

Pershing discussing move to control portion of broker-dealers’ cash.
Pershing discussing move to control portion of broker-dealers’ cash.

The clearing and custody giant is kicking the tires on new cash sweep plan with broker-dealer clients.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.