SEC halts fraudulent offering by Florida RIA

The Securities and Exchange Commission has filed an emergency action against Florida-based investment adviser Coral Gables Asset Management and its sole owner, David C. Coggins, in connection with an alleged fraudulent offering.

A U.S. District Court in Florida granted the SEC’s request for emergency relief, including an asset freeze and an order for records preservation, against Coggins and Coral Gables, as well as two entities charged by the SEC as relief defendants — Coral Gables Asset Holdings and its successor entity, Coral Gables Capital.

According to the SEC’s complaint, Coral Gables 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.

The complaint alleges that one document Coggins provided to investors and potential investors showed 37 months of positive monthly performance when in approximately 26 months during the specified timeframe, the fund had posted a negative performance.

The complaint further alleges that Coral Gables and Coggins falsified brokerage records and investor account statements and created and sent fake audit opinions to investors and third parties.

According to the complaint, Coggins misappropriated investor funds for personal use, including a luxury vehicle and travel.

The SEC is seeking injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and financial penalties against the defendants.

[More: SEC charges California RIA with stealing more than $2.2 million]

The post SEC halts fraudulent offering by Florida RIA appeared first on InvestmentNews.

As our second lead editor, Cindy Hamilton covers health, fitness and other wellness topics. She is also instrumental in making sure the content on the site is clear and accurate for our readers. Cindy received a BA and an MA from NYU.

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