The Securities and Exchange Commission Wednesday charged a Virginia financial advisor, Ryan R. Riley, with defrauding investors and clients out of almost half a million dollars.
At the same time, in a criminal matter, Riley waived his right to prosecution by indictment and consented to prosecution by information, pleading guilty on Wednesday, according to court filings. The criminal case said Riley had at least nine victims and was ordered to pay restitution of at least $434,000.
Riley started in the brokerage industry in 1996, according to his BrokerCheck profile, and dropped his brokerage license in 2010. He has been registered as an investment advisor in Leesburg, Virginia, since 2014 with Calibre Consulting Group, a registered investment advisor with just $755,000 in client assets, according to its Form ADV.
A call to Calibre Consulting could not be completed on Thursday because its phone number is no longer in service. Riley's attorney, Brittany M. Davidson, a public defender, declined to comment.
According to the SEC, from at least January 2014 through September 2019, Riley allegedly solicited advisory clients and other individuals to invest in securities issued by his companies, Green Light Energy and Mustang Resources Inc.
"Riley induced investors to invest by claiming that he would use their funds to acquire, develop, and operate oil and gas drilling projects in Texas," according to the SEC's complaint. "In reality, Riley misappropriated the funds, using some for personal expenses and losing the majority through risky day trading."
The financial advice industry has been facing inquiries into its cash sweep programs for years now.
Investor money allegedly went to strip clubs, exotic cars, and landscaping
Procyon adds $415 million in assets under management in New Jersey while Savant picks up a $213 million Southern California planning firm
With a growing number of real estate-rich Baby Boomers aging into retirement, some advisors may be failing to consider all the options available for those clients' assets.
Cornerstone Advisors study reveals compliance bottlenecks stall campaigns weeks after customer opportunities close.
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
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
