In the Matter of Marshall G. Eichenauer, Jr. Admin. Proc. File No. 3-18200
Oct. 14, 2022
On September 22, 2017, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Marshall G. Eichenauer, Jr. (“Eichenauer”) and Sagent Wealth Management, LLC (“Sagent Wealth”) (collectively, the “Respondents”). In the Order, the Commission found that, Eichenauer, an investment adviser, along with his advisory firm, Sagent Wealth, used money invested in a fund they managed to finance loans that personally benefitted Eichenauer. In doing so, Eichenauer and Sagent Wealth violated the Advisers Act’s anti-fraud protections by failing to disclose Eichenauer’s conflict of interest or obtain investors’ consent in causing the fund to make these loans. The Commission ordered the Respondents to pay a total of $16,110.31in disgorgement and prejudgment interest (“Distribution Fund”). The Commission also ordered the Respondents to pay a $165,000.00 civil money penalty to the Commission for transfer to the U.S. Treasury.
The Order provides for the Respondents to deposit the Distribution Fund into an escrow account, acceptable to the Commission staff. The Respondents are responsible for distributing the Distribution Fund in accordance with the Order. Tax compliance and any related administrative expenses are the responsibility of the Respondents. The Order requires that the Respondents submit to the Commission staff a final accounting and certification of the disposition of the Distribution Fund within 60 days of the Order. See the Commission’s Order: Release No. IA-4773.
For more information, please contact the Commission:
Office of Distributions