SEC Charges Financial Advisers With Fraud

Jun 1 2012 | 1:53pm ET

The Securities and Exchange Commission has charged investment advisor Jorge Gomez with misappropriating millions from one of his clients while agreeing to settle charges against Gomez’s associate, Roberto Aleph Espinosa.

According to the SEC’s complaint, filed in the US District Court for the Southern District of Florida, Gomez misappropriated at least US$4.3 million from an unnamed client, a Mexican national, between September 2007 and December 2010, hiding his theft by providing fake account statements and securities certificates.

Gomez, formerly located in Dallas, Texas and Mexico, is alleged to have lied about his ties to two large financial institutions in order to convince the client to invest $10.8 million with him in 2007, reports HedgeWeek. At the time, Gomez was president of Atlantic International Capital.

Espinosa is alleged to have helped Gomez invest about $3 million of the client’s money in Espinosa’s hedge fund, the ACG Global Fund.

The SEC is seeking permanent injunctions against Gomez for violating or aiding and abetting the violations of a number of securities laws, disgorgement of ill-gotten gains plus pre-judgment interest and civil penalties.

Espinosa has agreed to settle with the SEC, without admitting or denying the allegations against him. He faces a permanent injunction against future violations, disgorgement of $855,000 plus prejudgment interest of $34,822.15 and a one-time civil penalty of $130,000.
 

 


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