SEC v. Anthony James and James Asset Advisory

SEC Complaint for Injunctive Relief against Anthony James and James Asset Advisory


On September 24, 2008, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of Florida against James Asset Advisory, L.L.C. (James Asset), an investment advisory firm, and its principal, Anthony A. James, for misappropriating client funds and operating a Ponzi scheme.

The Commission's complaint alleges that from at least April 2001 through January 2008, the Defendants received at least $5.2 million from at least 44 clients who were told by the Defendants that client monies would be invested in stocks, bonds, and mutual funds. According to the complaint, the Defendants never invested any client funds in the stock market or other investments. Instead, James misappropriated at least $2.4 million in client monies to fund his lavish lifestyle, including the purchase of a six-bedroom, 5,000 square foot home, a luxury condominium, a Porsche sports car, and season tickets to the Miami Heat games. Moreover, like a classic Ponzi scheme, the Defendants transferred approximately $2.8 million from new clients to existing clients to repay principal or to create the illusion of profitable trading. In addition, to facilitate and otherwise conceal their fraud, the complaint alleges that the Defendants provided clients with false account statements reflecting securities holdings and returns that did not exist.

The Commission's complaint charges James and James Asset with violating 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.

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

Reference Info:Pleadings | Federal, 11th Circuit, Florida | 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:


Doug Cornelius on:

Readers' Choice 2017
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.