Broker fined, barred by SEC for cherry-picking

Broker fined, barred by SEC for cherry-picking
Cease-and-desist order alleges Roger Denha allocated profitable trades to his personal account at the expense of clients.
AUG 17, 2018

The Securities and Exchange Commission is barring and fining Roger Denha, an investment adviser with BKS Advisors, for allegedly engaging in "cherry-picking." According to an SEC cease-and-desist order, Mr. Denha bought securities in an omnibus account and waited to allocate them until after they increased or decreased in price. Mr. Denha then disproportionately allocated profitable trades to his personal and family accounts, while allocating unprofitable trades to his advisory clients. He conducted this scheme from January 2012 to November 2017 to obtain $412,230 of realized and unrealized gains, the SEC filing alleges. (More: SEC bars former adviser, orders him to pay $1.58 million) By knowingly allocating trades to favored accounts at the expense of others, the SEC said Mr. Denha violated a rule prohibiting investment advisers from employing any device, scheme or artifice to defraud clients. In addition to barring Mr. Denha, the SEC ordered a disgorgement of the gains plus $35,388 of interest. He was also fined $169,000. Mr. Denha managed 197 clients and $202 million in assets. He has no other disciplinary history.

Latest News

People moves: RBC taps Raymond James veteran for Texas complex
People moves: RBC taps Raymond James veteran for Texas complex

Meanwhile, DPL Financial Partners adds two annuity executives and Prime Capital Financial hires a Mid-Atlantic retirement plan consultant

Ex-LPL, special needs advisor pleads guilty in fraud case
Ex-LPL, special needs advisor pleads guilty in fraud case

Andrew Komarow pleaded guilty Thursday in federal court in Hartford to defrauding three financial services companies of close to $3.3 million.

Advisor moves: Raymond James lands $700M Truist team in Naples
Advisor moves: Raymond James lands $700M Truist team in Naples

Elsewhere, Cetera picks up a $210 million Connecticut team from MML, while Wells Fargo FiNet adds a San Diego family practice from LPL

Investor accuses Lasater Capital of hiding $100M in fund defaults
Investor accuses Lasater Capital of hiding $100M in fund defaults

Celebrity endorsements, $500M in claimed assets, and a state regulator stepping in.

American Express to make job cuts as AI revolution ramps up
American Express to make job cuts as AI revolution ramps up

“We needed to become a more agile and efficient organization,” said American Express CEO Stephen Squeri.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor