SEC Takes Action: Lufkin Advisors’ Registration Revoked Over Crypto Fraud Allegations
The U.S. Securities and Exchange Commission (SEC) launched administrative proceedings against Lufkin Advisors LLC on Wednesday, accepting a settlement offer from the firm.
The SEC’s investigation revealed fraudulent activities by Lufkin Advisors, which included mishandling crypto assets, making undisclosed investments linked to the spouse of the firm’s principal, and improper accounting practices. Additionally, the firm failed in its obligations to monitor investment values and comply with regulatory requirements concerning asset custody, reporting accuracy, and recordkeeping.
Consequently, the SEC has permanently barred Lufkin Advisors from future violations of multiple sections of the Advisers Act and corresponding rules, and has revoked their registration. Lufkin Advisors consented to the SEC’s order without admitting or denying the findings, except for acknowledging the SEC’s jurisdiction and specific conclusions.
Clever Robot News Desk 30th June 2024
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