The Securities and Exchange Commission today announced charges against Clifton Curtis Sneed, Jr., a recidivist securities law violator based in Texas, for defrauding investment advisory clients out of more than $1 million.

According to the SEC's complaint, Sneed held himself out to clients, some of whom he met by targeting members of churches, as an investment expert who would help them earn guaranteed outsized returns. As alleged in the complaint, Sneed actively concealed his lengthy criminal and regulatory history, falsely claimed to hold numerous financial certifications, and failed to disclose that he was being paid commissions from companies he recommended to clients. The complaint alleges that, while Sneed's clients lost at least approximately $1.1 million, Sneed allegedly received more than $400,000 in fees and undisclosed commissions.

As set forth in the complaint, Sneed's recidivist history includes pleading guilty to felony securities fraud and other securities violations in Utah and being ordered to cease and desist from securities offerings in multiple states on numerous occasions from 2006 through 2018, including for committing fraud in violation of state securities laws. As set forth in the complaint, the SEC previously charged Sneed with violations of the antifraud and registration provisions of the federal securities. Sneed agreed to be enjoined from violating the charged provisions to resolve the action. The complaint alleges that he failed to disclose this history to clients.

The SEC's complaint, filed in U.S. District Court for the Northern District of Texas, charges Sneed with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, 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. The complaint seeks a permanent injunction, a conduct-based injunction, disgorgement of allegedly ill-gotten gains with prejudgment interest, and a civil penalty.

On November 6, 2019, a federal grand jury indicted Sneed for much of the same conduct alleged in the SEC's complaint.

The SEC's investigation was conducted by David Hirsch and Melvin Warren, and supervised by Scott F. Mascianica and Eric R. Werner of the SEC's Fort Worth Regional Office.  The SEC's litigation is being conducted by Keefe Bernstein and Mr. Hirsch, and supervised by B. David Fraser. The SEC appreciates the assistance of the FBI and the United States Attorney's Office for the Northern District of Texas.

The SEC's Retail Strategy Task Force and Office of Investor Education and Advocacy (OIEA) encourage investors to check the background of anyone selling or offering them an investment using the free and simple search tool on Investor.gov. Investors can also use the SALI feature to find information about certain people who have had judgments or orders issued against them in SEC court actions or administrative proceedings.