(HedgeCo.Net) The Securities and Exchange Commission has announced settled charges against an Austin, Texas-based investment adviser for defrauding his clients through a \u201ccherry-picking\u201d scheme. The adviser, Robert Mark Magee, who is the principal, sole owner, and sole employee of Valor Capital Asset Management LLC, has agreed to be banned from the securities industry and pay more than $715,000 to resolve the charges.<\/p>\n
According to the SEC\u2019s order, for almost three years, Magee traded securities in Valor\u2019s omnibus account but waited to allocate the trades to client accounts until after the securities\u2019 performance changed over the course of the day. Magee then \u201ccherry-picked\u201d the trades, disproportionately allocating profitable trades to his accounts and unprofitable trades to his clients\u2019 accounts, reaping substantial profits for himself at his clients\u2019 expense. The SEC\u2019s order found that for most of the three-year period there was less than a one-in-a-trillion chance that the outsized performance of Magee\u2019s personal account, compared to that of his clients\u2019 accounts, was due to chance.<\/p>\n
\u201cThis case echoes the several actions our office has brought in recent months aimed at protecting unsuspecting retail investors from investment advisers who allegedly cheat their clients by cherry-picking profitable trades,\u201d said Michele Wein Layne, Director of the SEC\u2019s Los Angeles Regional Office. \u201cThe settled order here finds that Magee and Valor cherry-picked trades to their clients\u2019 detriment for almost three years.\u201d <\/p>\n
The SEC\u2019s order found that Magee and Valor each violated antifraud provisions of the federal securities laws. Without admitting or denying the SEC\u2019s findings, Magee and Valor agreed to the entry of a cease-and-desist order and to pay disgorgement, prejudgment interest, and civil penalties totaling $715,871.57. Magee also agreed to be barred from the securities industry. <\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission has announced settled charges against an Austin, Texas-based investment adviser for defrauding his clients through a \u201ccherry-picking\u201d scheme. The adviser, Robert Mark Magee, who is the principal, sole owner, and sole employee of Valor […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-62689","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=62689"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62689\/revisions"}],"predecessor-version":[{"id":62690,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62689\/revisions\/62690"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=62689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=62689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=62689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}