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

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--