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

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management