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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22347 / April 27, 2012

Securities and Exchange Commission v. James Putman., et al., United States District Court for the Eastern District of Wisconsin, Civil Action No. 09-C-506 (E.D. Wis., filed May 20, 2009)

COURT AWARDS SUMMARY JUDGMENT AGAINST DEFENDANT JAMES PUTMAN AND ORDERS HIM TO PAY OVER $1.6 MILLION

The Commission announced that on April 24, 2012, a Wisconsin federal court awarded summary judgment to the Commission on its claims against James Putman (“Putman”), a defendant in an action filed by the Commission in May 2009. The Commission alleged in its complaint that Putman, the founder and Chief Executive Officer of Wealth Management LLC (“WM”), a registered investment adviser located in Appleton, Wisconsin, improperly accepted $1.24 million in 2006 and 2007 in undisclosed payments derived from life insurance premium financing investments made by WM’s clients. The complaint further alleged that Putman breached his fiduciary duty and engaged in fraud by misrepresenting the safety and stability of WM’s clients’ investments.

The Court’s Decision and Order granting the Commission’s motion for summary judgment enjoins Putman from future violations of Section 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and orders Putman to pay disgorgement and prejudgment interest in the amount of $1,530,129 and a civil money penalty of $130,000, for a total amount of $1,660,129.

For further information, please see Litigation Release Number 21055 (May 21, 2009).

 

 

http://www.sec.gov/litigation/litreleases/2012/lr22347.htm


Modified: 04/27/2012