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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22995 / May 16, 2014

Securities and Exchange Commission v. Douglas E. Cowgill and Professional Investment Management, Inc., Civil Action No. 2:14 CV 396 (S.D. Ohio)

Court Enters Preliminary Injunction Against Ohio-Based Investment Adviser and Its President and Appoints Receiver

The Securities and Exchange Commission announced that, on May 15, 2014, the Honorable Algenon L. Marbley, United States District Court Judge for the Southern District of Ohio, entered an order of preliminary injunction and other relief, by consent, against Professional Investment Management, Inc. (PIM), a Columbus, Ohio-based investment adviser, and its president, Douglas E. Cowgill. The Court also entered an order, by consent, appointing a receiver for the estate of PIM. The Court appointed Michael P. O'Grady as the receiver.

The SEC filed a complaint against PIM and Cowgill under seal on April 29, 2014, which alleges a shortfall in a money market fund account managed by PIM. According to the complaint, which was unsealed on May 2, PIM reported in account statements sent to clients that they held a total of approximately $7.7 million in a money market fund when in fact the account reflecting these investments held less than $7 million. The SEC further alleges that Cowgill attempted to disguise this shortfall from SEC examiners by entering a fake trade in PIM's account records. To avoid detection, Cowgill also allegedly provided additional falsified reports to SEC staff, and moved money from one account holding client funds to another.

For further information, please see Litigation Release Number LR-22985 (May 5, 2014) [Securities and Exchange Commission v. Douglas E. Cowgill and Professional Investment Management, Inc., Civil Action No. 2:14 CV 396 (S.D. Ohio)]

 

http://www.sec.gov/litigation/litreleases/2014/lr22995.htm


Modified: 05/16/2014