SEC Charges New York Investment Adviser and Its Owner with Fraud

Litigation Release No. 25209 / September 16, 2021

Securities and Exchange Commission v. Raquel Moura Borges, et al., No. 20-CV-10051 (S.D.N.Y. filed December 1, 2020)

On December 1, 2020, the Securities and Exchange Commission charged Raquel Moura Borges and her investment advisory firm, Global Access Investment Advisor, LLC, with fraud for misappropriating client assets.

According to the SEC's complaint, from 2013 to 2018, Borges, a Brazilian national, and Global Access, based in New York, NY, defrauded at least eight advisory clients by misappropriating at least $11 million of their funds. The complaint alleges that Borges and Global Access directed sales of securities in client accounts in order to misappropriate the proceeds, misappropriated proceeds of loans against client accounts arranged by Borges and Global Access, and misappropriated client funds intended for investment by writing checks to Borges and otherwise using client funds for Global Access's operations. The complaint further alleges that Borges and Global Access concealed their fraudulent misappropriation of assets by sending clients portfolio statements and bank documents showing inaccurate account balances. According to the complaint, Borges used client funds to purchase real estate in Manhattan for her personal benefit, pay herself, and repay other clients.

The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charged Borges and Global Access 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 further charged Borges with aiding and abetting the violations of Global Access and violating the control person provisions of Section 20(a) of the Exchange Act. The SEC seeks injunctive relief, civil penalties, and disgorgement of ill-gotten gains plus prejudgment interest.

The SEC's investigation was conducted by Ibrahim Sajalieu Bah, Christopher Dunnigan, Doreen Rodriguez, George O'Kane, and Celeste Chase of the SEC's New York office. The SEC's litigation is led by Christopher Dunnigan and Ibrahim Sajalieu Bah, and the case is being supervised by Lara Shalov Mehraban.