The Securities and Exchange Commission has barred former investment advisor James D. Burleson for engaging in a cherry-picking scheme that cost his clients more than $3.5 million in losses while he made $1.8 million in profits.
On Aug. 6, 2025, the SEC obtained a final judgment against Burleson, who was the managing partner of the now-defunct SEC-registered investment advisory firm Burleson & Company, LLC, in Petaluma, Calif.
Burleson agreed to pay more than $2 million — which includes $1,837,700 in disgorgement, prejudgment interest of $216,590 and a $230,464 civil penalty.
On Nov. 21, 2024, the SEC filed a complaint alleging that from August 2020 to October 2022 Burleson used his firm’s omnibus trading account to disproportionately allocate profitable option trades to his personal account and disproportionately allocate unprofitable options trades to his clients’ accounts.
As part of the settlement, Burleson also agreed to settle the administrative proceeding the SEC initiated against him, consenting to a bar from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization with the right to apply for re-entry after five years.
(Credit: Diego M. Radzinschi/ALM)
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.