SEC Charges Investment Adviser and its Former CEO for Undisclosed Withdrawals from Fund Bank Account

ADMINISTRATIVE PROCEEDING
File No. 3-21774

September 29, 2023 – The Securities and Exchange Commission today announced settled charges against New York City-based investment advisory firm Appomattox Advisory, Inc. and its former CEO, Oscar Gil Vollmer, for breaching their fiduciary duty to a pooled investment vehicle and a foreign feeder fund that they managed (collectively, “the Fund”), as well as the Fund’s investors who were also advisory clients.  

The SEC’s order finds that between July 2021 and November 2021, Vollmer made three undisclosed withdrawals totaling $480,000 from the Fund’s bank account to meet Appomattox’s operating expenses and payroll. In each case, within less than 30 days of withdrawing money from the Fund’s bank account, Vollmer and Appomattox subsequently repaid the Fund. The SEC’s order finds that these withdrawals of the Fund’s assets and their use to cover Appomattox’s expenses, including compensation payments to Vollmer, created an undisclosed material conflict of interest because Vollmer and Appomattox put the Fund’s assets at risk in order to meet the financial obligations of Appomattox.

The SEC’s order finds that Appomattox and Vollmer violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Without admitting or denying the findings, Appomattox and Vollmer consented to cease-and-desist orders, Appomattox agreed to a censure and a $150,000 civil penalty, and Vollmer agreed to a 12-month suspension and a $125,000 civil penalty.  

The SEC’s investigation was conducted by Brian A. Kudon and Sandeep Satwalekar in the New York Regional Office, and was supervised by Tejal D. Shah. The examination that led to the investigation was conducted by Anthony Fiduccia, Kristine Geissler, Merryl Hoffman, and Joseph Connolly of the SEC’s Division of Examinations.