SEC Charges Adviser With Scamming More Than $8 Million

The Securities Exchange Commission (SEC) alleged that Warren Nadel, owner of Registered Investment Advisers LLC, scammed investors out of $8 million in commissions and fees through a fraudulent investment management program, as reported by Investment News. According to the report, Nadel told his institutional investors from 2007 through 2009 that they were putting their money in a “liquid cash management strategy” that included market transactions. He also claimed that he was investing in preferred utility securities that were held for short periods in order to generate capital appreciation or dividends. Unfortunately, Nadel knew by 2007 that the market was not liquid enough to allow for frequent purchases at attractive prices.

The SEC alleged that while creating the appearance of a liquid market, Mr. Nadel collected $6 million in commissions and $2.4 million in advisory fees over a three year period. It is seeking to recover the commissions and fees, in addition to penalties and interest.

contact us for a free consultation
Free Consultation: (800) 259-9010