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Regulation and Compliance > Federal Regulation > SEC

Advisor Refuses to Provide Books and Records: SEC

By Melanie Waddell

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What You Need to Know

  • The firm and its president have steadfastly refused to provide certain books and records, the SEC said.
  • The firm also improperly registered with the commission as an internet investment advisor.
  • Material misstatements and omissions were made in Form ADV, the SEC said.

The Securities and Exchange Commission has charged Bóveda Asset Management Inc. and its president with refusing to provide the firm’s books and records to agency examiners.

Bóveda Asset Management and George Kenneth Witherspoon Jr. “have steadfastly refused to provide the Commission with certain books and records that, by law, they are required to provide,” the agency said Tuesday in a complaint.

The commission’s staff initially requested the information in September 2019.

“After Defendants produced nothing despite repeated requests by the Commission staff, the Commission subpoenaed the same information and ultimately obtained an order from the United States District Court for the Northern District of Georgia compelling production. Yet Defendants continued to produce nothing,” the complaint states.

The SEC states that the firm also improperly registered with the commission as an internet investment advisor “and maintained custody of client assets but failed to comply with requirements to safeguard those assets.”

Between 2014 and 2021, defendants also made material misstatements and omissions in forms they filed with the commission, according to the complaint.

Among other issues, Bóveda’s Uniform Application for Investment Adviser Registration and Form ADV falsely claimed that Witherspoon is a certified financial planner and that Bóveda did not have custody of client assets and grossly overstated Bóveda’s assets under management, the SEC said.

The complaint seeks permanent injunctions from future violations of these provisions and civil monetary penalties.

Melanie Waddell

@Think_MelanieW

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