The Securities and Exchange Commission has obtained a final judgment against Mohammed Ali Rashid, a former senior partner at Apollo Management, imposing a civil penalty of $240,000.
The SEC's complaint, filed Oct. 25, 2017, alleged that Rashid allocated personal expenses to private equity funds that he and Apollo advised by misrepresenting the expenses as legitimate business expenses.
The complaint alleged that Rashid was reimbursed for approximately $290,000 in personal expenses fraudulently disguised as legitimate business expenses, including a New Year's trip to Brazil, a friend's bachelor party and wedding, a flight to the Super Bowl, and numerous dinners with friends and family at high-end Manhattan restaurants.
Prior to the filing of the SEC's complaint, Rashid repaid Apollo for the ill-gotten funds and Apollo reimbursed the affected funds.
On Sept. 23, after a nine-day bench trial at which 33 witnesses testified, the district court found that Rashid had engaged in a pattern of repeatedly, knowingly and falsely describing personal expenses as business expenses and had violated the Investment Advisers Act of 1940.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.