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

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave