Defendant Name: First Western Capital Management Company

Defendant Type: Subsidiary of Public Company
Public Company Parent: First Western Financial, Inc.
SIC Code: 9999
CUSIP: 33751L10

Initial Case Details

Legal Case Name In the Matter of First Western Capital Management Company
First Document Date 16-Jul-2020
Initial Filing Format Administrative Action
File Number 3-19882
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Section 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 16-Jul-2020
Headline Total Penalty and Disgorgement $200,000

Related Documents:

IA-5543 16-Jul-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On July 16, 2020, the SEC instituted settled cease-and-desist proceedings against First Western Capital Management Company. The SEC stated: "From October 2010 through July 2017 (the "Relevant Period"), FWCM purchased for Advisory clients securities that were sold in reliance on Rule 144A under the Securities Act of 1933 ("Securities Act") without having adequate compliance policies and procedures and without providing investment adviser representatives ("IARs") training and supervision of Rule 144A securities. As a result, over a seven-year period, certain IARs purchased for 81 FWCM advisory clients a gross total of over $666 million worth of securities sold in reliance on Rule 144A when the clients were not qualified institutional buyers in a Rule 144A transaction."
IA-5543-s 16-Jul-2020 Administrative Summary
SEC Charges Investment Adviser with Supervisory and Compliance Failures
The SEC stated that: "First Western Capital Management Company, a Colorado-based registered investment adviser, has agreed to settle charges that it failed reasonably to supervise its investment adviser representatives who purchased securities sold in reliance on Rule 144A under the Securities Act of 1933 for advisory clients when the clients were not qualified institutional buyers in a Rule 144A transaction, and failed to adopt and implement written policies and procedures reasonably designed to prevent violations of the Investment Advisers Act of 1940 and the rules thereunder by the adviser and its supervised persons."