WASHINGTON (CN) - The SEC on Tuesday sanctioned two investment advisers for impeding SEC investigations.
and his New York-based firm Barthelemy Group LLC misled SEC examiners by inflating the firm's claimed assets under management tenfold in an apparent attempt to show that the firm was eligible for SEC registration, the SEC said in a statement announcing its cease-and-desist order.
And Seth Richard Freeman
and his San Francisco-area firm EM Capital delayed nearly 18 months in producing books and records on its mutual fund advisory business, the SEC added.
Both firms agreed to settle with the SEC.
Barthelemy misrepresented his firm's AUM [assets under management] as $26.28 million instead of the actual $2.628 million," the SEC said in a statement. "He downloaded client account balances from the firm's online custodial platform onto a spreadsheet, and then manually moved the decimal points for each client one place to the right before providing it to the SEC staff. From July 2009 to early 2011, Barthelemy improperly registered Barthelemy Group with the SEC on the basis of the aspirational AUM that was 10 times higher than reality."
Barthelemy agreed to be barred from the securities industry for 2 years, the SEC said.
Freeman and EM Capital agreed to pay a $20,000 penalty.