U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20996 / April 10, 2009
Securities and Exchange Commission v. Crossroads Financial Planning, Inc., and Julie M. Jarvis, Case No. 2:09-cv-269 (ALM) (SDOH) (April 8, 2009)
SEC Charges Ohio Investment Adviser With Defrauding Elderly Clients of $2.3 Million
The Securities and Exchange Commission filed a civil action on April 8, 2009, against Crossroads Financial Planning, Inc., and Julie M. Jarvis, of Columbus, Ohio, in connection with an alleged scheme by Jarvis to misappropriate funds from two elderly clients. Crossroads is an investment adviser registered with the Commission, and Jarvis is its president, chief operating officer and principal owner. The Commission's complaint, filed in the United States District Court for the Southern District of Ohio, alleges that Jarvis, the owner of Crossroads, misappropriated at least $2.3 million between June 2000 and March 2009.
According to the Commission's complaint, in or about May 2000, Jarvis first caused the unauthorized transfer of funds from a client's account at a brokerage firm. Over the course of the next nine years, through various means including forged and falsely notarized funds transfers instructions, Jarvis misappropriated funds from the investment accounts of the two elderly clients and used those funds for her personal expenses and benefit. In some instances, Jarvis had to liquidate securities to effect the fraudulent transfers.
The complaint, which seeks permanent injunctions, disgorgement and civil penalties, charges Jarvis and Crossroads with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and it charges Crossroads with violating Section 204 of the Advisers Act and Rule 204-2 thereunder, and Jarvis with aiding and abetting those violations.
On April 9, 2009, Judge Algenon L. Marbley, U.S. District Judge for the Southern District of Ohio, granted the Commission's motion for a Temporary Restraining Order ("TRO") and set the Preliminary Injunction hearing for April 22, 2009. In addition to enjoining the defendants from violating provisions of the Federal Securities laws, as charged by the Commission in its complaint, the TRO imposes a freeze on Jarvis's and Crossroads' assets. The Judge also ordered Jarvis to submit a financial accounting, and he granted the Commission's request for expedited discovery and other emergency relief.
The Commission notes the assistance and cooperation from the United States Attorney's Office for the Southern District of Ohio and the Federal Bureau of Investigation.
The Commission's investigation is ongoing.