David C. Coggins, et al.

On September 24, 2020, the Securities and Exchange Commission obtained a judgment against Florida-based investment adviser Coral Gables Asset Management LLC, its owner David C. Coggins, and two relief defendants in an ongoing civil action based on an alleged fraudulent securities offering.

The SEC's complaint, filed on August 19, 2020 in federal court in Florida, alleges that Coral Gables Asset Management and Coggins solicited investors for a private fund they managed by misrepresenting the fund's past performance, the amount of assets they were managing, and Coggins' experience as a portfolio manager. According to the complaint, the defendants provided investors with falsified investor account statements and audit opinions. Additionally, Coggins allegedly misappropriated investor funds for personal use, including to pay for a luxury vehicle and travel, and destroyed evidence related to his fraudulent conduct after he received a request from the SEC to preserve documents.

The complaint charged Coral Gables Asset Management and Coggins with violating 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), 206(2), 206(4) of Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The complaint also charged Coggins with aiding and abetting Coral Gables' violations of the Investment Advisers Act and named Coral Gables Asset Holdings, L.P. and its successor entity Coral Gables Capital, L.P., as relief defendants. Without admitting or denying the SEC's allegations, the defendants and the relief defendants consented to the entry of a judgment that permanently enjoins the defendants from violating the charged provisions, with monetary relief to be paid by the defendants and relief defendants to be determined by the court at a later date. On September 29, 2020, based on the permanent injunctions entered against Coggins and his offer of settlement, the Commission barred Coggins from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.

The SEC's investigation, which is continuing, is being conducted by Jeffrey D. Felder and Tracy W. Bowen in the Denver Regional Office and supervised by Kimberly L. Frederick, Jason J. Burt, and Kurt L. Gottschall. The SEC's litigation is being led by Zachary T. Carlyle and Christopher E. Martin and supervised by Gregory A. Kasper.