In the Matter of HCR Wealth Advisors Admin. Proc. File No. 3-19494
Oct. 7, 2022
On September 23, 2019, the Commission instituted and simultaneously settled an administrative and cease-and-desist proceeding by issuing an Order against HCR Wealth Advisors (“HCR”). In the Order, the Commission found that the Respondent failed to reasonably supervise Jeremy Joseph Drake (“Drake”), formerly an investment adviser representative of HCR, and failed to implement reasonable compliance-related policies and procedures in response to red flags about Drake’s handling of client accounts. The Commission ordered, and the Respondent has paid, a civil money penalty in the amount of $220,000 to the Commission. See the Commission’s Order.
On December 2, 2021 the Commission issued an Order establishing a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the civil money penalty paid by Respondent can be distributed to the remaining investor victim. See the Commission’s Order.
On August 31, 2022, 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. 34-95641.
For more information, please contact the Commission:
Office of Distributions