Investment Professional Charged by SEC Sentenced to Three and a Half Years in Prison in Parallel Criminal Case

Litigation Release No. 25178 / August 20, 2021

Securities and Exchange Commission v. Marcus Boggs, No. 19-cv-5672 (N.D. Ill. filed August 23, 2019)

United States v. Marcus Boggs, No. 19-cr-659 (N.D. Ill. filed August 20, 2019)

On August 18, 2021, Marcus Boggs, whom the SEC charged in August 2019 with stealing more than $1.7 million from at least three of his investment advisory clients, was sentenced in a parallel criminal case to 42 months in prison.

The criminal charges against Boggs stem, in part, from the same misconduct alleged in the SEC's complaint, which was filed in federal district court in Chicago, Illinois. The SEC's complaint alleges that Boggs, without his clients' knowledge or authorization, misappropriated his clients' money by selling securities in their advisory accounts and then transferring the proceeds to his personal credit card account. The complaint further alleges that from 2016 to 2018, Boggs made more than 200 illegal transfers from three advisory clients' accounts to his personal credit card account.

The SEC's litigation against Boggs is ongoing. On December 18, 2019, the district court entered a partial judgment against Boggs enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) 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 ordering him to pay disgorgement, prejudgment interest, and penalties in amounts to be determined by the court at a later date.

The SEC's investigation was conducted by BeLinda Mathie and Ann Tushaus and supervised by Steven Klawans of the SEC's Chicago Regional Office. The SEC's litigation is led by Benjamin Hanauer. The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois and the Federal Bureau of Investigation.