Adviser claimed $1.5B in assets, had $9M: SEC

Commission claims Hanlon failed to inform clients that his firm's financial status was 'seriously impaired'
MAR 01, 2011
The U.S. Securities and Exchange Commission accused a California investment firm and its president of inflating the value of its assets under management and misleading clients. Charles P. “Chip” Hanlon, president of Delta Global Advisors Inc., claimed that his firm managed as much as $1.5 billion in assets between March 2007 and July 2008 when actual values had dropped to as low as $9 million during that period, the SEC said in an administrative order today. Delta also falsely claimed it had the requisite $25 million in advisory assets to register with the SEC, the order said. A call to Hanlon's office phone at Los Angeles-based Delta Global Advisors, a call to his mobile phone and an e-mail weren't immediately returned. According to the SEC's order, Delta and Hanlon didn't tell clients that the firm's financial condition was “seriously impaired” in 2009 and 2010 because the firm had minimal liquid assets and overdue bills. In 2009, Delta provided advisory services to more than 200 accounts belonging to individuals, pension plans, trusts and corporations, the SEC said. --Bloomberg News--

Latest News

Trump account confusion is widespread among parents — and advisors have an opening
Trump account confusion is widespread among parents — and advisors have an opening

Only 7% of U.S. parents are "very confident" they understand how the Trump accounts work, says Omni Calculator

Receiver sues to recover alleged Traders Domain Ponzi profits
Receiver sues to recover alleged Traders Domain Ponzi profits

One transfer alone came to $5.6m, and the receiver says none of it was real profit.

SEC accuses S2A Modular founders of alleged $65 million investor fraud
SEC accuses S2A Modular founders of alleged $65 million investor fraud

Investors chose which factory to fund - the SEC says the money went elsewhere.

Ameriprise gets narrow relief from FINRA panel in latest recruiting dispute with LPL
Ameriprise gets narrow relief from FINRA panel in latest recruiting dispute with LPL

Ameriprise and LPL Financial for the past few years have engaged in a financial advice trade war.

Am I stuck? Rethinking career mobility at every stage
Am I stuck? Rethinking career mobility at every stage

Why advisors at every stage may have more leverage, flexibility, and strategic options than they realize.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income