Official at Utah's securities cop eyes suit against regulator, sources say

George Robison, the director of licensing for the Utah Division of Securities, is discussing taking legal action against his employer for allegedly retaliating against him because he participated in an audit of the division, according to people familiar with the situation.
JAN 26, 2010
George Robison, the director of licensing for the Utah Division of Securities, is discussing taking legal action against his employer for allegedly retaliating against him because he participated in an audit of the division, according to people familiar with the situation. The audit was initiated by state Assemblyman Jim Bird in response to adviser complaints about overly aggressive enforcement agents and huge delays in getting hearings, Completed in July of 2008, the investigation concluded that that the division was being grossly mismanaged — resulting in long procedural delays, internal conflicts and poor communication, both internally and with outside investigations of financial services professionals. As the audit was being conducted, division director Wayne Klein resigned. Since the audit took place, a number of employees, including Mr. Robison, have been subject to retribution for participating in the audit, people familiar with the situation claim. “There have certainly been allegations from various folks at the division that there have been reprisals and retaliation for cooperating with the legislative audit,” said a person familiar with the situation, who asked not to be identified. Mr. Robison is discussing taking legal action or going public with his experience, that source said. Mr. Robison and his attorney, Randall K. Edwards, declined to comment. Jennifer Bolton, a spokeswoman for the Securities Division, said the agency “openly encouraged” all of its employees to comply with the audit. In a Nov. 1, 2007, e-mail, Mr. Klein instructed employees to “be as helpful as you can” with the audit.” Insiders said, however, that in May 2007, even before the audit started, Mr. Robison was being targeted for coming up against Mr. Klein. Specifically, insiders claim Mr. Robison was stripped of his responsibilities as director of compliance and licensing, and was later named merely director of licensing. In July 2007, Mr. Robison appealed to the Utah Career Service Review Board, but it rejected his claim, stating that the change in his responsibilities was a restructuring, not a demotion. Mr. Robison's role changed as a direct result in the division's decision to restructure its compliance and licensing sections to “address conflict-of-interest issues which had been brought to the division's attention,” Ms. Bolton wrote in an e-mail. But the problems between Mr. Robison and the division have continued. Most recently, Keith Woodwell, its director, withheld three days of Mr. Robison's pay for causing morale problems, sources said. Mr. Robison has filed an appeal with the Career Service Review Board. If that doesn't work, he will turn to the courts, insiders said. E-mail Jessica Toonkel Marquez at [email protected].

Latest News

Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon
Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon

“It’s time for an economic reset,” wrote the California governor, in a post on X.

Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus
Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus

Masterworks was launched in 2017 but its RIA, Masterworks Advisers, is just three years old.

Investors allege Miami operator took over $1.5 million in EB-5 scheme
Investors allege Miami operator took over $1.5 million in EB-5 scheme

One 2017 form, no broker license, and a $42 million gap they say surfaced on a webinar.

Gen X, millennials lag in retirement confidence amid knowledge gap
Gen X, millennials lag in retirement confidence amid knowledge gap

Fewer than half of Americans in their peak earning years feel on track for retirement, while many say limited financial knowledge and access to professional guidance are holding them back.

Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill
Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill

Meanwhile, Wells Fargo hauled advisors overseeing $825 million in the West Coast, while Wedbush has welcomed a seasoned professional from Stifel in California.

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

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.