SEC censures Arizona RIA for false ADVs

Mark Love and firm to pay $100,000 for failing to disclose fund tie.
JAN 04, 2018

The Securities and Exchange Commission has censured Phoenix, Ariz.-based adviser Mark H. Love and his firm, LKL Investment Counsel, and ordered the firm to pay a $100,000 penalty in connection with the filing of misleading ADV forms. The SEC said that it ordered Mr. Love and his firm to cease and desist from further violations of the Advisers Act. Starting in 2009, according to the agency, Mr. Love began recommending that certain LKL clients invest in private funds without disclosing on LKL's ADV that he held managerial interests in those funds and that he stood to receive fees and a share of investment profits from those funds. Clients who invested in the private funds did know of Mr. Love's involvement with the funds, yet from at least 2010 to 2015, Parts 1 and 2 of the firm's ADV falsely stated that Mr. Love had no outside financial industry activities or affiliations and did not have any ownership or proprietary interests in client transactions. During an early 2016 SEC examination of LKL, the agency said, Mr. Love made these same misrepresentations to examiners and failed to produce requested documents to them regarding certain of his private funds. It later failed to deliver a revised Form ADV Part 2 brochure after it made a material change in its reported assets under management.

Latest News

Retirement plan defaults leave key participant decisions unresolved
Retirement plan defaults leave key participant decisions unresolved

New Allspring research finds 401(k) participants want guidance on income and rollovers, not just portfolio automation.

Global equity release market set to triple, with US leading growth
Global equity release market set to triple, with US leading growth

Aging homeowners hold record housing wealth - but most advisors still aren't bringing it into retirement plans

Retiree alleges advisor withheld $600K through real estate LLC web
Retiree alleges advisor withheld $600K through real estate LLC web

$1.7M invested from an inheritance. Then the phone went dead.

SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception
SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception

The pre-IPO platform sold $430M in units while allegedly rigging prices behind the scenes.

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

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