SEC Accuses 2 Investment Firms Of Disclosure Violations

Law360, New York (November 26, 2013, 5:55 PM EST) -- The U.S. Securities and Exchange Commission on Tuesday accused two Houston-based investment advisory firms and three executives of engineering thousands of principal transactions through their affiliated brokerage firm without first informing their clients, in violation of SEC disclosure rules.

The SEC launched administrative proceedings against investment advisers Parallax Investments LLC and Tri-Star Advisors Inc., which it alleges engaged in thousands of self-dealing securities transactions involving client accounts without telling clients or obtaining their consent beforehand, in violation of the Investment Advisers Act.

Parallax’s owner John P. Bott...
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