Defendant Name: SFX Financial Advisory Management Enterprises, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Live Nation Entertainment, Inc.
SIC Code: 7922
CUSIP: 53803410

Initial Case Details

Legal Case Name In the Matter of SFX Financial Advisory Management Enterprises, Inc. and Eugene S. Mason
First Document Date 15-Jun-2015
Initial Filing Format Administrative Action
File Number 3-16591
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4), 207 Investment Advisers Act; Rule 206(4)-7 Investment Advisers Act; Failed reasonably to supervise Ourand within the meaning of Section 203(e)(6) of the Investment Advisers Act
Additionally, Eugene S. Mason is alleged to have caused SFX Financial Advisory Management Enterprises, Inc.'s violation of Section 206(4), Rule 206(4)-7 Advisers Act.

Resolutions

First Resolution Date 15-Jun-2015
Headline Total Penalty and Disgorgement $175,000

Related Documents:

2015-120 15-Jun-2015 Press Release--Administrative Proceeding
Investment Advisory Firm's Former President Charged With Stealing Client Funds
On June 15, 2015, the SEC stated in Press Release: "The Securities and Exchange Commission today announced fraud charges against a Washington D.C.-based investment advisory firm's former president accused of stealing client funds. The firm and its chief compliance officer separately agreed to settle charges that they were responsibly for compliance failures and other violations."
IA-4116 15-Jun-2015 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940, making Findings, and imposing a Cease-and-Desist Order
On June 15, 2015, the SEC instituted settled administrative and cease-and-desist proceedings against SFX Financial Advisory Management Enterprises, Inc. ("SFX") and Eugene S. Mason. According to the SEC: "From 2006 through 2011, Brian Ourand ('Ourand'), while SFX's Vice President and President, misappropriated at least $670,000 in assets from three client accounts. During this time, SFX failed to supervise Ourand and also committed compliance failures. In particular, SFX failed to adopt policies and procedures reasonably designed to prevent the misappropriation of client assets, failed to implement the policies it did have, violated the custody rule, and falsely stated in its Form ADV that it reviewed client accounts used for bill-paying services. SFX also failed to conduct its annual compliance review in 2011. Mason, SFX's Chief Compliance Officer ('CCO'), caused SFX's failure to implement its compliance policies, conduct an annual review and is responsible for a material misstatement in a Form ADV filing."

Other Defendants in Action:

Eugene S. Mason

Related Actions:

In the Matter of Brian J. Ourand
Brian J. Ourand
In the Matter of Santos, Postal & Company, P.C. and Joseph A. Scolaro, CPA
Santos, Postal & Company, P.C.
Joseph A. Scolaro, CPA