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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23755 /February 21, 2017

Securities and Exchange Commission v. William P. Carlson, Jr., No. 17-cv-01328 (N.D. Ill. filed Feb. 21, 2017)

SEC Charges Financial Adviser With Stealing Client Funds

On February 21, 2017, the Securities and Exchange Commission charged a Chicago area investment adviser representative with misappropriating more than $900,000 from a client's account through more than 40 unauthorized transactions.

The SEC's complaint, filed in federal court in Chicago, alleges that William P. Carlson, Jr., an investment adviser representative associated with a registered investment adviser, forged a client's signature on check and journal requests and caused checks to be issued from the client's account to a third party who gave the proceeds to Carlson. Carlson also directed that checks made payable to the client be issued from the client's account, and then intercepted those checks, forged the client's endorsement on those checks, and deposited the checks into his own account. In submitting these fraudulent check requests, Carlson repeatedly caused securities held by the client to be sold to fund the unauthorized withdrawals.

The SEC's complaint charges Carlson with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and with violating or, alternatively, with aiding and abetting violations of, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks a permanent injunction, disgorgement, prejudgment interest, and civil money penalties.

In a parallel action, the U.S. Attorney's Office for the Northern District of Illinois today filed criminal charges against Carlson.

The SEC's investigation, which is continuing, is being conducted by Arsen Ablaev, Michael Foster and Kathryn Pyszka. The litigation will be led by Michael Foster. The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois and the Federal Bureau of Investigation.

SEC Complaint

 

https://www.sec.gov/litigation/litreleases/2017/lr23755.htm


Modified: 02/21/2017