Bradley Morgan Holts

SEC Charges Texas Stockbroker for Stealing Funds from Elderly Customers

Litigation Release No. 25651 / February 27, 2023

Securities and Exchange Commission v. Bradley Morgan Holts, No. 1:23-cv-00081 (E.D. Tex. filed Feb. 27, 2023)

The Securities and Exchange Commission today announced the filing of a civil injunctive action against Bradley Morgan Holts of Beaumont, Texas, for allegedly misappropriating customer funds.

The SEC's complaint alleges that Holts, while a registered representative associated with a broker-dealer based in Denver, Colorado, misappropriated $186,382 from three elderly customers of the broker-dealer. According to the SEC's complaint, Holts falsely told these investors that he would invest their money in mutual funds. The SEC's complaint further alleges that Holts instead stole the investors' money and used it to pay personal expenses, including for clothing, tanning salons, adult and dating websites, and a divorce lawyer.

The SEC's complaint, which was filed in the United States District Court for the Eastern District of Texas, charges Holts with violating the antifraud provisions of 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. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty.

The SEC's investigation was conducted by Kimberly S. Steckling, J. Lee Robinson, and Donna B. Walker and supervised by Ian S. Karpel, Nicholas P. Heinke, and Jason J. Burt. The litigation will be led by Leslie J. Hughes and supervised by Gregory A. Kasper, Mr. Heinke, and Mr. Burt.

Last Reviewed or Updated: May 31, 2023