The US Supreme Court says it will not review the decision by a federal appeals court affirming the US Securities and Exchange Commission’s decision to bar investment adviser David Disraeli from the securities industry. The SEC accused the Texan of a number of violations, including broker misconduct (such as the making of material misrepresentations when selling and offering securities).
The SEC had concluded that David Henry Disraeli and his company Lifeplan Associates Inc. violated federal securities law antifraud proscriptions when they omitted and misrepresented material facts related to a private offering by Lifeplan, which the investment adviser then presented and sold to numerous clients.
The agency also found that Disraeli did not maintain appropriate and accurate records and books. The SEC says that when he registered as an investment advisor he was not qualified for the position and he included material misrepresentations in his applications.
In light of the Texas securities fraud case, the SEC has taken away Disraeli’s investment adviser registration, barred him from the securities industry, and told him to pay a civil money penalty of $85,000, plus a disgorgement of $84,300 and prejudgment interest.
The Texas investment adviser filed a certiorari petition last year. Disraeli claimed that the agency did not come up with “compelling reasons for the issuance of the death penalty,” as well as for why other sanctions weren’t sufficient. He also said that if the case was allowed to stand, the circuit court would have lowered the bar for what is required to prevent him from belonging in the securities industry and deprive him of his livelihood.
Disraeli says that the appeals court should have taken into consideration his lengthy relationships with his shareholders and the fact that he had accomplished his business plan’s “main objectives.”
Related Web Resources:
Adviser Fails to Gain High Court Review Of Ruling Affirming SEC Industry Bar Order, BNA Securities Law, March 23, 2010
Read the Appeals Court Decision (PDF)
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