Skip to main content

In the Matter of Train, Babcock Advisors LLC Admin. Proc. File No. 3-18324

Oct. 7, 2022

On December 22, 2017, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Train, Babcock Advisors LLC (“TBA”), an investment adviser registered with the Commission. In the Order, the Commission alleged, among other things, that two former principals of TBA misappropriated more than $10 million collectively from two TBA client accounts in separate fraudulent schemes that spanned 12 years from 2004 through 2016. The Commission ordered TBA to pay a total of $1,700,725.23 in disgorgement, prejudgment interest, and civil money penalty. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, can be distributed to investors harmed by TBA’s conduct.  See the Commission’s Order: Release No. 34-82399

On August 23, 2018, 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. 34-83914

On June 4, 2020, the Commission issued an order directing the payment of funds received less a reserve for taxes and administrative expenses to the Kurr Foundation. See the Commission’s Order: Release No. 34-89013

For more information, please contact the Commission:

Office of Distributions

Return to Top