SEC charges RIA firm's former COO with overbilling clients and inflating salary

SEC charges RIA firm's former COO with overbilling clients and inflating salary
Agency says Richard Diver's scheme overcharged clients of M&R Capital by $750,000 .
MAR 28, 2019

The Securities and Exchange Commission has filed charges against the former chief operating officer of a New York RIA firm for helping the firm overbill clients as part of a scheme to inflate his own pay. According to the SEC's complaint, between 2011 and December 2018, Richard T. Diver, a former senior vice president of M&R Capital, engaged in an "illicit scheme to steal approximately $6 million from his employer," the SEC said in a release. (More:Chicago-area 'adviser' convicted in $10 million swindle) The agency said that Mr. Diver, whose duties included managing the firm's payroll and client billing functions, allegedly inflated his salary by hundreds of thousands of dollars per year by overbilling more than 300 accounts by approximately $750,000 to generate additional revenue. When confronted by the firm's CEO in December 2018, Mr. Diver confessed to having carried out the scheme, the SEC said. "When the scheme came to light, we took swift action to ensure that there was no further investor harm," said Marc P. Berger, director of the SEC's New York Regional Office. The SEC referred the case to the U.S. Attorney's Office for the Southern District of New York, which separately has announced criminal charges against Mr. Diver.

Latest News

Americans back sharing AI wealth as debate over industry’s economic benefits grows
Americans back sharing AI wealth as debate over industry’s economic benefits grows

Public support grows for policies that spread AI’s financial gains beyond tech companies.

JPMorgan's record Q2 profit rides trading and dealmaking surge
JPMorgan's record Q2 profit rides trading and dealmaking surge

Investment banking fees rose 30% on a wave of IPOs and megadeals, led by the largest public listing on record.

Feathery raises $30 million to power AI-driven RIA operations
Feathery raises $30 million to power AI-driven RIA operations

Series A funding from Portage, Bain Capital, and other investors will fuel data tools designed to speed advisor transitions and cut onboarding delays across wealth firms.

Wealth Enhancement deepens East Coast presence with Wealthshield deal
Wealth Enhancement deepens East Coast presence with Wealthshield deal

The Minneapolis-based RIA aggregator is adding two North Carolina practices managing nearly $1 billion, pushing its total client assets past $158.2 billion.

The real reason I expanded my RIA to Hong Kong (it wasn't for the AUM)
The real reason I expanded my RIA to Hong Kong (it wasn't for the AUM)

As markets disintegrate, the value of on-the-ground, first-hand research through "intimate knowledge acquisition" is skyrocketing.

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