SEC Charges Florida Investment Adviser for Custody Rule Violations

ADMINISTRATIVE PROCEEDING
File No. 3-22380

December 20, 2024 – The Securities and Exchange Commission today instituted settled administrative and cease-and-desist proceedings against Florida-based investment advisory firm Driftwood Advisors, LLC (“Driftwood Advisors”), for failing to distribute required audited financial statements in a timely manner. 

According to the SEC’s order, Driftwood Advisors has been registered with the Commission as an investment adviser since 2020.  The SEC’s order finds that Driftwood Advisors failed to distribute to investors within the prescribed time period audited financial statements prepared in accordance with GAAP for three private funds its fiscal years 2021 and 2022.  

The SEC's order finds that Driftwood Advisors willfully violated Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-2 thereunder. Without admitting or denying the findings, Driftwood Advisors consented to a cease-and-desist order, a censure, and agreed to pay a $115,000 penalty.

The SEC’s investigation was conducted by Christine Hernandez and supervised by Sean O’Neill and Glenn Gordon in the Miami Regional Office, with the assistance of SEC Division of Examinations staff Ileana Jaime, Melissa Falcon, Keisha Lewis, Adrian Gonzalez, Omar Santos, Jesse Alvarez, and Jean Cabot in the Miami Regional Office.