(Hedgeco.Net) The Securities and Exchange Commission has announced the filing of a civil injunctive action against Bradley Morgan Holts of Beaumont, Texas, for allegedly misappropriating customer funds.

The SEC’s complaint alleges that Holts, while a registered representative associated with a broker-dealer based in Denver, Colorado, misappropriated $186,382 from three elderly customers of the broker-dealer. According to the SEC’s complaint, Holts falsely told these investors that he would invest their money in mutual funds. The SEC’s complaint further alleges that Holts instead stole the investors’ money and used it to pay personal expenses, including for clothing, tanning salons, adult and dating websites, and a divorce lawyer.

The SEC’s complaint, which was filed in the United States District Court for the Eastern District of Texas, charges Holts with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty.