SEC v. Locke Capital Management, Inc. and Leila C. Jenkins

SEC Complaint against Locke Capital Management, Inc. and Leila C. Jenkins

more+
less-

The SEC Complaint alleges that Locke and Jenkins invented a billion-dollar client in order to gain credibility and attract legitimate investors. Jenkins lied to SEC staff about the existence of the invented client and furnished the staff with bogus documents. Even as Locke began to take on real clients, the assets under management of its real clients never amounted to more than a very small portion of the billion-plus dollars that Jenkins claimed to manage. They continued to make false statement concerning the confidential accounts were made in brochures, meetings, submissions to online databases that prospective clients used to select money managers, and in SEC filings. Besides the invented client and assets under management, they misrepresented performance for years in which Locke had no clients and deceived clients about the makeup of the firm, including the number, identity, and role of its employees.

The Complaint alleges that Locke and Jenkins violated 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), 206(2), and 207 of the Investment Advisers Act of 1940. The Complaint further alleges that Locke violated, and Jenkins aided and abetted violations of, Sections 204, 204A, and 206(4) of the Advisers Act and Rules 204-2(a), 204A-1, and 206(4)-1(a)(5) thereunder.

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Pleadings | Federal, 1st Circuit, Rhode Island | United States


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Doug Cornelius | Attorney Advertising

Written by:

more+
less-

Doug Cornelius on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×