In the Matter of SICA Wealth Management, LLC, et al.
Admin. Proc. File No. 3-19716
On February 27, 2020, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against SICA Wealth Management, LLC (“SWM”) and Jeffrey C. Sica (“Sica”) (collectively, the “Respondents”). In the Order, the Commission found that, on Sica’s recommendation, approximately 45 SWM advisory clients invested a total of more than $30 million in securities issued by Aequitas Commercial Finance, LLC, one of numerous entities affiliated with the Aequitas enterprise, the ultimate parent of which is Aequitas Management, LLC (“Aequitas”). In the Order, the Commission further found that, from October 2013 to November 2015, the Respondents violated the federal securities laws in making those recommendations when they failed to disclose to those clients material facts regarding the nature of compensation that Aequitas provided to SWM and another firm owned and controlled by Sica. The Commission ordered: SWM to pay a total of $378,693.42 in disgorgement, prejudgment interest, and civil money penalties pursuant to the payment plan detailed therein, with the last payment due within 360 days of the Order; and Sica to pay a $30,000 civil money penalty, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents’ conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. IA-5453.
The Fair Fund consists of the $150,000.00 paid to date, and any future funds paid pursuant to the Order will be added to the Fair Fund.
On April 8, 2020 the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-88598.
For more information, please contact the Commission:
Office of Distributions