SEC Says Adviser Invested $666M For Unqualified Buyers
Law360 (July 16, 2020, 4:34 PM EDT) -- The U.S. Securities and Exchange Commission hit a Colorado-based investment adviser with a $200,000 fine Thursday for allegedly placing more than $666 million of client money into securities the investors didn't qualify for over a nearly seven-year period.
The SEC said in a settlement order that "inadequate training, compliance policies and procedures and supervision" led Denver-based First Western Capital Management Co. to funnel the funds on behalf of 81 clients into securities that were reserved for so-called qualified institutional buyers, or QIBs, which are defined as having at least $100 million in assets.
"These account holders were individuals and trusts, individual...
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