The cases stem from an initiative within the SEC Enforcement Division’s Asset Management Unit that focuses on directly on adviser compliance programs.
The three investment advisers charged with compliance failures in separate cases were Utah-based OMNI Investment Advisors; Minneapolis-based Feltl & Co and Michigan-based Asset Advisors.
The SEC also charged OMNI’s owner Gary Beynon, who served as the firm’s chief compliance officer despite living in Brazil and performing virtually no compliance responsibilities.
Feltl & Company, Asset Advisors, and Beynon will pay financial penalties and institute a series of corrective measures to settle the SEC’s charges.
In two of the cases – OMNI and Asset Advisors – SEC examiners previously warned the firms about their compliance deficiencies.
Under the settlement, Beynon agreed to pay a $50,000 penalty and Feltl & Company agreed to pay a penalty of $50,000 and return more than $142,000 to certain advisory clients.
Asset Advisors agreed to pay a $20,000 penalty, cease operations, de-register with the Commission, and – with clients’ consent – move advisory accounts to a firm with an established compliance program.
