A federal court in North Carolina has entered a final judgment against adviser Richard W. Davis, finding him liable for disgorgement and prejudgment interest of $653,904 in connection with a scheme that defrauded 75 clients, taking $9.3 million of their investment funds.
In light of his 2018 conviction and sentence to a 90-month prison term in a parallel criminal case, the Securities and Exchange Commission, which filed a complaint against Davis in 2016, dismissed its claim for a civil penalty.
In its complaint, the SEC alleged that Davis, of Charlotte, North Carolina, told investors that he would invest their money in assets such as real estate or mineral rights. Instead, he used the money to engage in undisclosed transactions with companies he owned.
He then continued to misrepresent to investors that their investments were growing, despite actually suffering losses, the SEC said in a release. According to the complaint, Davis also misappropriated a large part of the money he raised from investors for his own personal use.
Meanwhile, DPL Financial Partners adds two annuity executives and Prime Capital Financial hires a Mid-Atlantic retirement plan consultant
Andrew Komarow pleaded guilty Thursday in federal court in Hartford to defrauding three financial services companies of close to $3.3 million.
Elsewhere, Cetera picks up a $210 million Connecticut team from MML, while Wells Fargo FiNet adds a San Diego family practice from LPL
Celebrity endorsements, $500M in claimed assets, and a state regulator stepping in.
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