SEC revokes registration of DMS Advisors over fraud

The Securities and Exchange Commission has revoked the license of DMS Advisors of Leesport, Penn. The firm, headed by Peter Kohli, had been a registered investment adviser since 2012 and served as investment adviser to four emerging-market mutual funds administered by The DMS Funds, another company operated by Mr. Kohli. In its Administrative Proceeding order, the SEC said its complaint alleged that DMS Advisors and Mr. Kohli solicited investors to invest in the DMS mutual funds, but instead used the money for other purposes. The complaint also alleges that to conceal the fraud, Mr. Kohli sent investors fake financial statements purporting to show their investments in the mutual funds. In 2016, the SEC issued an emergency asset freeze against Mr. Kohli,saying that he was defrauding investors while his mutual fund business was failing. The Commission charged that Mr. Kohli fraudulently raised more than $3.2 million from at least 120 investors from 2012 through 2015.