Locke Capital Management Inc. allegedly created a fake, Switzerland-based billion dollar client in an attempt to attract legitimate investors, the Securities and Exchange Commission said today.
According to the SEC's complaint, Leila Jenkins and her investment advisory firm, Locke Capital in Rhode Island and New York, allegedly made up so-called confidential client accounts, purportedly based in Switzerland, and repeatedly claimed the accounts contained more than $1 billion in assets that she managed. From at least 2003 to 2009, falsehoods concerning the confidential accounts were communicated in brochures, meetings, submissions to online databases that prospective clients used to select money managers, and in SEC filings, the commission said.
Besides the invented client and assets under management, the SEC's complaint alleged several other lies Jenkins and her firm told to investors including misrepresenting Locke's performance for years in which she had no clients and deceiving clients about the makeup of the firm, including the number, identity, and role of its employees.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.