The Securities and Exchange Commission charged Patrick Thayer of Cincinnati, Ohio, previously a dually-registered and investment advisory representative, with misappropriating more than $1.3 million from an advisory client.
The SEC’s complaint alleges that in November 2013, Thayer surreptitiously established an account in a client’s name over which he maintained control and, without the client’s permission, regularly transferred client assets to the account, which he then used to pay personal expenses, including his mortgage. The complaint alleges that Thayer engaged in this conduct for nearly a decade, in total misappropriating over $1.3 million by periodically selling the client’s securities to fund transfers to the clandestine account.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Ohio, Western Division, charges Thayer with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Thayer, without admitting or denying the allegations, consented to a partial settlement, agreeing to be permanently enjoined from future violations of the charged provisions and to pay monetary relief in an amount to be determined by the court at a later date upon motion of the SEC. The settlement is subject to court approval.
The SEC’s investigation was conducted by Kyle Bradley and was supervised by Natalie Brunson and Justin Jeffries of the Atlanta Regional Office. Robert Schroeder will lead the litigation under the supervision of Graham Loomis.
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