In re FOCUSED WEALTH

 
 
 
 
 
UNITED STATES OF AMERICA 
 Before the  
SECURITIES AND EXCHANGE COMMISSION 
 
INVESTMENT ADVISERS ACT OF 1940 
Release No. 6717 / September 24, 2024 
 
ADMINISTRATIVE PROCEEDING 
File No.  3-22162 
 
In the Matter of 
FOCUSED WEALTH 
MANAGEMENT, INC., 
Respondent. 
ORDER INSTITUTING ADMINISTRATIVE 
AND CEASE-AND-DESIST PROCEEDINGS, 
PURSUANT TO SECTIONS 203(e) AND 
203(k) OF THE INVESTMENT ADVISERS 
ACT OF 1940, MAKING FINDINGS, AND 
IMPOSING REMEDIAL SANCTIONS AND 
A CEASE-AND-DESIST ORDER 
 
I. 
The Securities and Exchange Commission (“Commission”) deems it appropriate and in 
the public interest that public administrative and cease-and-desist proceedings be, and hereby 
are, instituted pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 
(“Advisers Act”) against Focused Wealth Management, Inc. (“FWM” or “Respondent”). 
 
II. 
In anticipation of the institution of these proceedings, Respondent has submitted an Offer 
of Settlement (“Offer”) that the Commission has determined to accept. Respondent admits the 
facts set forth in Section III below, acknowledges that its conduct violated the federal securities 
laws, admits the Commission’s jurisdiction over it and the subject matter of these proceedings, and 
consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings, 
Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, 
and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below. 
 
  

 
2 
 
III. 
On the basis of this Order and Respondent’s Offer, the Commission finds
1
 that: 
 
Summary 
1. The federal securities laws impose recordkeeping requirements on registered 
investment advisers to ensure that they responsibly discharge their crucial role in our markets. 
The Commission has long said that compliance with these requirements is essential to 
investor protection and the Commission’s efforts to further its mandate of protecting 
investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. 
2. These proceedings arise out of the widespread and longstanding failure of FWM 
personnel throughout the firm, including at senior levels, to adhere to certain of these essential 
requirements and the firm’s own policies and procedures. Using their personal devices, these 
personnel communicated both internally and externally by text messages and/or unapproved 
written communications platforms (“off-channel communications”). 
3. From at least June 2019 (the “Relevant Period”), FWM personnel sent and 
received off-channel communications that were records required to be maintained under 
Advisers Act Rule 204-2(a)(7). Respondent did not maintain or preserve the substantial 
majority of these written communications for the five-year period required by Advisers Act 
Rule 204-2. Respondent’s failures were firm-wide and involved personnel at various levels of 
authority throughout the organization. As a result, FWM violated Section 204 of the Advisers 
Act and Rule 204-2(a)(7) thereunder. 
4. FWM failed to adopt and implement policies and procedures reasonably designed 
to prevent the firm and its supervised persons from violating recordkeeping requirements under 
the Advisers Act. 
5. During the time period that FWM failed to maintain and preserve off-channel 
communications its personnel sent and received, FWM received and responded to Commission 
requests for documents in an investigation. As a result, FWM’s recordkeeping failures likely 
impacted the Commission’s ability to carry out its regulatory functions and investigate violations 
of the federal securities laws in the investigation. 
6. The Commission staff uncovered FWM’s violation after an investigation revealed 
the failures to preserve off-channel communications, and FWM initiated a review of its 
recordkeeping failures and began a program of remediation. FWM’s remediation then 
continued throughout the remainder of the Relevant Period. FWM’s remediation efforts 
included implementing technology improvements and retaining a compliance consultant. 
  
                                                      
1
  The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on 
any other person or entity in this or any other proceeding. 
 

 
3 
 
Respondent 
 
7. FWM is incorporated in New York with its principal place of business in 
Newburgh, New York. Since November 2010, it has been registered with the Commission as an 
investment adviser. 
Recordkeeping Requirements Under the Advisers Act 
8. Section 204 of the Advisers Act authorizes the Commission to issue rules 
requiring investment advisers to make and keep for prescribed periods, and furnish copies of, 
such records as necessary or appropriate in the public interest or for the protection of 
investors. 
9. The Commission adopted Advisers Act Rule 204-2 pursuant to this authority. 
This rule specifies the manner and length of time that the records made in accordance with 
Commission rules, and certain other records made by investment advisers, must be 
maintained and produced promptly to Commission representatives. 
10. The rules adopted under Section 204 of the Advisers Act, including Advisers Act 
Rule 204-2(a)(7), require that investment advisers preserve in an easily accessible place originals 
of all written communications received and copies of all written communications sent relating to, 
among other things: (a) any recommendation made or proposed to be made and any advice given 
or proposed to be given; (b) any receipt, disbursement, or delivery of funds or securities; (c) the 
placing or execution of any order to purchase or sell any security; or (d) predecessor performance 
and the performance or rate of return of any or all managed accounts, portfolios, or securities 
recommendations. 
FWM’s Policies and Procedures 
11. FWM maintained certain policies and procedures to retain business-related 
records, including electronic communications, in compliance with the relevant recordkeeping 
provisions. Until July 2021, however, FWM policies and procedures also generally allowed 
employees to use text messaging for internal business communications. FWM permitted 
employees to use text messaging with clients for communications other than for “investment 
recommendations, specific products or services, investment performance, or for any other 
business purposes.” Employees were strictly prohibited from using personal email services for 
“any business purpose.” 
12. Prior to July 2021, FWM’s policies and procedures were not reasonably 
designed to prevent the firm or its supervised persons from violating the Advisers Act’s 
recordkeeping requirements with respect to text messages that supervised persons sent to their 
colleagues at the advisory firm.  Further, FWM did not implement its policies and procedures 
that prohibited use of personal email accounts for business correspondence. FWM had no 
means to monitor for, or to capture and retain, text messages or emails from personal accounts 
that FWM was required to keep under Rule 204-2(a)(7). 
 
 

 
4 
 
13. In July 2021, FWM modified its compliance policies and procedures to permit 
only emails and text messaging via FWM’s email and text messaging services, except in the 
event that FWM’s email and text messaging system were unavailable, in which case an 
employee was permitted to use personal email or text messaging for business as long as the 
employee copied the communication to the FWM system in order to retain such communication. 
FWM provided certain employees with work phones and allowed employees to use FWM email 
addresses and a text messaging application on those work phones for business. Messages sent 
through either service were retained by FWM. 
 
FWM’s Recordkeeping Failures 
14. During the course of an investigation, Commission staff discovered that FWM 
had not maintained certain books and records as required under the Advisers Act. During that 
investigation, in response to document requests by the staff, FWM gathered and produced emails 
and text messages to and from several FWM personnel, including those at senior levels, and a 
FWM contractor subject to FWM’s policies and procedures, that were sent or received by text 
message on personal phones or using personal email accounts. These off-channel 
communications were not maintained on FWM’s systems. 
15. Based on a review of these off-channel emails and texts, Commission staff 
identified pervasive off-channel communications among FWM personnel throughout the firm, 
including at senior levels, as well as off-channel communications between FWM personnel and 
FWM clients. FWM personnel sent or received off-channel communications that were records 
required to be preserved by FWM under the Advisers Act. These off-channel communications 
were sent among FWM colleagues as well as to and from FWM clients and others.   
16. Off-channel communications included records required to be preserved under the 
Advisers Act because they related to an advisory recommendation made or proposed to be made 
or advice given or proposed to be given. For example, a FWM employee emailed a client a list of 
his recommended stocks from his personal email account. The email further stated that the 
employee could be reached on either his FWM email account or his personal email account.  
17. Other off-channel communications were records required to be preserved under 
the Advisers Act because they related to the placing or execution of orders to purchase or sell 
securities. For example, a FWM employee used his personal email account to send a client a list 
of individual securities he had purchased for the client along with his recommendation to move 
money into a separate account. 
18. FWM employees routinely communicated internally concerning all aspects of 
their work via their personal email accounts and by personal text messages. These 
communications were not maintained or preserved by FWM, and related to, among other things: 
recommendations made or proposed to be made and advice given or proposed to be given to 
clients; receipt, disbursement or delivery of funds or securities; placing or execution of orders to 
purchase or sell securities; and the performance or rate of return of managed accounts, portfolios, 
or securities recommendations. 
 
FWM’s Failure to Preserve Required Records Potentially 

 
5 
 
Compromised and Delayed Commission Matters 
 
19. During the Relevant Period, FWM received and responded to Commission 
subpoenas for documents and records requests during a Commission investigation. By failing to 
maintain and preserve required records relating to its business, FWM likely deprived the 
Commission of these off-channel communications. 
FWM’s Violations 
20. As a result of the conduct described above, FWM willfully violated Section 
206(4) of the Advisers Act and Rule 206(4)-7 thereunder. 
21. As a result of the conduct described above FWM willfully
2
 violated Section 204 
of the Advisers Act and Rule 204-2(a)(7) thereunder. 
 
FWM’s Efforts to Comply 
22. In determining to accept the Offer, the Commission considered steps promptly 
undertaken and cooperation afforded the Commission staff by Respondent.  Before being 
approached by the staff, FWM began remediating the deficiencies in its compliance policies 
and procedures in 2021, and continued remediation efforts throughout the Relevant Period.  
As part of this remediation, FWM hired a compliance consultant and upgraded its methods 
for archiving and reviewing text messages. 
 
IV. 
In view of the foregoing, the Commission deems it appropriate and in the public interest 
to impose the sanctions agreed to in Respondent’s Offer. 
 
Accordingly, pursuant to Sections 203(e) and 203(k) of the Advisers Act, it is hereby 
ORDERED that: 
A. Respondent cease and desist from committing or causing any violations and any 
future violations of Sections 204 and 206(4) of the Advisers Act and Rules 204-
2 and 206(4)-7 thereunder. 
B. Respondent is censured. 
C. Respondent shall, within 14 days of the entry of this Order, pay a civil money 
penalty in the amount of $325,000 to the Securities and Exchange Commission 
for transfer to the general fund of the United States Treasury, subject to Exchange 
                                                      
2
  “Willfully,” for purposes of imposing relief under Section 203(e) of the Advisers Act, “‘means 
no more than that the person charged with the duty knows what he is doing.’”  See Wonsover v. SEC, 
205 F.3d 408, 414 (D.C. Cir 2000) (quoting Hughes v. SEC, 174 F.2d 969, 977 (D.C. Cir. 1949)).  
There is no requirement that the actor “also be aware that he is violating one of the Rules or Acts.”  
Tager v. SEC, 344 F. 2d 5, 8 (2d Cir. 1965). 
 

 
6 
 
Act Section 21F(g)(3). If timely payment is not made, additional interest shall 
accrue pursuant to 31 U.S.C. § 3717. 
 
Payment must be made in one of the following ways: 
 
(1) Respondent may transmit payment electronically to the Commission, 
which will provide detailed ACH transfer/Fedwire instructions upon 
request; 
 
(2) Respondent may make direct payment from a bank account via Pay.gov 
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or 
 
(3) Respondent may pay by certified check, bank cashier’s check, or United States 
postal money order, made payable to the Securities and Exchange Commission 
and hand-delivered or mailed to:  
 
Enterprise Services Center 
Accounts Receivable Branch 
HQ Bldg., Room 181, AMZ-341 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 
 
Payments by check or money order must be accompanied by a cover letter identifying Focused Wealth 
Management as the Respondent in these proceedings, and the file number of these proceedings; a copy 
of the cover letter and check or money order must be sent to Thomas P. Smith, Jr., Associate Regional 
Director, Division of Enforcement, Securities and Exchange Commission, New York Regional Office, 100 Pearl 
Street, Suite 20-100, New York, NY 10004. 
 
D. Amounts ordered to be paid as a civil money penalty pursuant to this Order shall 
be treated as a penalty paid to the government for all purposes, including all tax purposes. To 
preserve the deterrent effect of the civil penalty, Respondent agrees that in any Related Investor 
Action, it shall not argue that it is entitled to, nor shall it benefit by, offset or reduction of any 
award of compensatory damages by the amount of any part of Respondent’s payment of a civil 
penalty in this action (“Penalty Offset”). If the court in any Related Investor Action grants such 
a Penalty Offset, Respondent agrees that it shall, within 30 days after entry of a final order 
granting the Penalty Offset, notify the Commission’s counsel in this action and pay the amount 
of the Penalty Offset to the Securities and Exchange Commission. Such a payment shall not be 
deemed an additional civil penalty and shall not be deemed to change the amount of the civil 
penalty imposed in this proceeding. For purposes of this paragraph, a “Related Investor Action” 
means a private damages action brought against Respondent by or on behalf of one or more 
investors based on substantially the same facts as alleged in the Order instituted by the 
Commission in this proceeding. 
 
By the Commission. 
 
Vanessa A. Countryman 
Secretary 

UNITED STATES OF AMERICA 

 Before the  

SECURITIES AND EXCHANGE COMMISSION 

 

INVESTMENT ADVISERS ACT OF 1940 

Release No. 6717 / September 24, 2024 

 

ADMINISTRATIVE PROCEEDING 

File No.  3-22162 

 

In the Matter of 

FOCUSED WEALTH 

MANAGEMENT, INC., 

Respondent. 

ORDER INSTITUTING ADMINISTRATIVE 

AND CEASE-AND-DESIST PROCEEDINGS, 

PURSUANT TO SECTIONS 203(e) AND 

203(k) OF THE INVESTMENT ADVISERS 

ACT OF 1940, MAKING FINDINGS, AND 

IMPOSING REMEDIAL SANCTIONS AND 

A CEASE-AND-DESIST ORDER 

 

I. 

The Securities and Exchange Commission (“Commission”) deems it appropriate and in 

the public interest that public administrative and cease-and-desist proceedings be, and hereby 

are, instituted pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 

(“Advisers Act”) against Focused Wealth Management, Inc. (“FWM” or “Respondent”). 

 

II. 

In anticipation of the institution of these proceedings, Respondent has submitted an Offer 

of Settlement (“Offer”) that the Commission has determined to accept. Respondent admits the 

facts set forth in Section III below, acknowledges that its conduct violated the federal securities 

laws, admits the Commission’s jurisdiction over it and the subject matter of these proceedings, and 

consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings, 

Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, 

and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”), as set forth below. 

 

  



 

2 

 

III. 

On the basis of this Order and Respondent’s Offer, the Commission finds1 that: 

 

Summary 

1. The federal securities laws impose recordkeeping requirements on registered 

investment advisers to ensure that they responsibly discharge their crucial role in our markets. 

The Commission has long said that compliance with these requirements is essential to 

investor protection and the Commission’s efforts to further its mandate of protecting 

investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. 

2. These proceedings arise out of the widespread and longstanding failure of FWM 

personnel throughout the firm, including at senior levels, to adhere to certain of these essential 

requirements and the firm’s own policies and procedures. Using their personal devices, these 

personnel communicated both internally and externally by text messages and/or unapproved 

written communications platforms (“off-channel communications”). 

3. From at least June 2019 (the “Relevant Period”), FWM personnel sent and 

received off-channel communications that were records required to be maintained under 

Advisers Act Rule 204-2(a)(7). Respondent did not maintain or preserve the substantial 

majority of these written communications for the five-year period required by Advisers Act 

Rule 204-2. Respondent’s failures were firm-wide and involved personnel at various levels of 

authority throughout the organization. As a result, FWM violated Section 204 of the Advisers 

Act and Rule 204-2(a)(7) thereunder. 

4. FWM failed to adopt and implement policies and procedures reasonably designed 

to prevent the firm and its supervised persons from violating recordkeeping requirements under 

the Advisers Act. 

5. During the time period that FWM failed to maintain and preserve off-channel 

communications its personnel sent and received, FWM received and responded to Commission 

requests for documents in an investigation. As a result, FWM’s recordkeeping failures likely 

impacted the Commission’s ability to carry out its regulatory functions and investigate violations 

of the federal securities laws in the investigation. 

6. The Commission staff uncovered FWM’s violation after an investigation revealed 

the failures to preserve off-channel communications, and FWM initiated a review of its 

recordkeeping failures and began a program of remediation. FWM’s remediation then 

continued throughout the remainder of the Relevant Period. FWM’s remediation efforts 

included implementing technology improvements and retaining a compliance consultant. 

  

                                                      
1  The findings herein are made pursuant to Respondent’s Offer of Settlement and are not binding on 

any other person or entity in this or any other proceeding. 

 



 

3 

 

Respondent 

 

7. FWM is incorporated in New York with its principal place of business in 

Newburgh, New York. Since November 2010, it has been registered with the Commission as an 

investment adviser. 

Recordkeeping Requirements Under the Advisers Act 

8. Section 204 of the Advisers Act authorizes the Commission to issue rules 

requiring investment advisers to make and keep for prescribed periods, and furnish copies of, 

such records as necessary or appropriate in the public interest or for the protection of 

investors. 

9. The Commission adopted Advisers Act Rule 204-2 pursuant to this authority. 

This rule specifies the manner and length of time that the records made in accordance with 

Commission rules, and certain other records made by investment advisers, must be 

maintained and produced promptly to Commission representatives. 

10. The rules adopted under Section 204 of the Advisers Act, including Advisers Act 

Rule 204-2(a)(7), require that investment advisers preserve in an easily accessible place originals 

of all written communications received and copies of all written communications sent relating to, 

among other things: (a) any recommendation made or proposed to be made and any advice given 

or proposed to be given; (b) any receipt, disbursement, or delivery of funds or securities; (c) the 

placing or execution of any order to purchase or sell any security; or (d) predecessor performance 

and the performance or rate of return of any or all managed accounts, portfolios, or securities 

recommendations. 

FWM’s Policies and Procedures 

11. FWM maintained certain policies and procedures to retain business-related 

records, including electronic communications, in compliance with the relevant recordkeeping 

provisions. Until July 2021, however, FWM policies and procedures also generally allowed 

employees to use text messaging for internal business communications. FWM permitted 

employees to use text messaging with clients for communications other than for “investment 

recommendations, specific products or services, investment performance, or for any other 

business purposes.” Employees were strictly prohibited from using personal email services for 

“any business purpose.” 

12. Prior to July 2021, FWM’s policies and procedures were not reasonably 

designed to prevent the firm or its supervised persons from violating the Advisers Act’s 

recordkeeping requirements with respect to text messages that supervised persons sent to their 

colleagues at the advisory firm.  Further, FWM did not implement its policies and procedures 

that prohibited use of personal email accounts for business correspondence. FWM had no 

means to monitor for, or to capture and retain, text messages or emails from personal accounts 

that FWM was required to keep under Rule 204-2(a)(7). 

 

 



 

4 

 

13. In July 2021, FWM modified its compliance policies and procedures to permit 

only emails and text messaging via FWM’s email and text messaging services, except in the 

event that FWM’s email and text messaging system were unavailable, in which case an 

employee was permitted to use personal email or text messaging for business as long as the 

employee copied the communication to the FWM system in order to retain such communication. 

FWM provided certain employees with work phones and allowed employees to use FWM email 

addresses and a text messaging application on those work phones for business. Messages sent 

through either service were retained by FWM. 

 

FWM’s Recordkeeping Failures 

14. During the course of an investigation, Commission staff discovered that FWM 

had not maintained certain books and records as required under the Advisers Act. During that 

investigation, in response to document requests by the staff, FWM gathered and produced emails 

and text messages to and from several FWM personnel, including those at senior levels, and a 

FWM contractor subject to FWM’s policies and procedures, that were sent or received by text 

message on personal phones or using personal email accounts. These off-channel 

communications were not maintained on FWM’s systems. 

15. Based on a review of these off-channel emails and texts, Commission staff 

identified pervasive off-channel communications among FWM personnel throughout the firm, 

including at senior levels, as well as off-channel communications between FWM personnel and 

FWM clients. FWM personnel sent or received off-channel communications that were records 

required to be preserved by FWM under the Advisers Act. These off-channel communications 

were sent among FWM colleagues as well as to and from FWM clients and others.   

16. Off-channel communications included records required to be preserved under the 

Advisers Act because they related to an advisory recommendation made or proposed to be made 

or advice given or proposed to be given. For example, a FWM employee emailed a client a list of 

his recommended stocks from his personal email account. The email further stated that the 

employee could be reached on either his FWM email account or his personal email account.  

17. Other off-channel communications were records required to be preserved under 

the Advisers Act because they related to the placing or execution of orders to purchase or sell 

securities. For example, a FWM employee used his personal email account to send a client a list 

of individual securities he had purchased for the client along with his recommendation to move 

money into a separate account. 

18. FWM employees routinely communicated internally concerning all aspects of 

their work via their personal email accounts and by personal text messages. These 

communications were not maintained or preserved by FWM, and related to, among other things: 

recommendations made or proposed to be made and advice given or proposed to be given to 

clients; receipt, disbursement or delivery of funds or securities; placing or execution of orders to 

purchase or sell securities; and the performance or rate of return of managed accounts, portfolios, 

or securities recommendations. 

 

FWM’s Failure to Preserve Required Records Potentially 



 

5 

 

Compromised and Delayed Commission Matters 

 

19. During the Relevant Period, FWM received and responded to Commission 

subpoenas for documents and records requests during a Commission investigation. By failing to 

maintain and preserve required records relating to its business, FWM likely deprived the 

Commission of these off-channel communications. 

FWM’s Violations 

20. As a result of the conduct described above, FWM willfully violated Section 

206(4) of the Advisers Act and Rule 206(4)-7 thereunder. 

21. As a result of the conduct described above FWM willfully2 violated Section 204 

of the Advisers Act and Rule 204-2(a)(7) thereunder. 

 

FWM’s Efforts to Comply 

22. In determining to accept the Offer, the Commission considered steps promptly 

undertaken and cooperation afforded the Commission staff by Respondent.  Before being 

approached by the staff, FWM began remediating the deficiencies in its compliance policies 

and procedures in 2021, and continued remediation efforts throughout the Relevant Period.  

As part of this remediation, FWM hired a compliance consultant and upgraded its methods 

for archiving and reviewing text messages. 

 

IV. 

In view of the foregoing, the Commission deems it appropriate and in the public interest 

to impose the sanctions agreed to in Respondent’s Offer. 

 

Accordingly, pursuant to Sections 203(e) and 203(k) of the Advisers Act, it is hereby 

ORDERED that: 

A. Respondent cease and desist from committing or causing any violations and any 

future violations of Sections 204 and 206(4) of the Advisers Act and Rules 204-

2 and 206(4)-7 thereunder. 

B. Respondent is censured. 

C. Respondent shall, within 14 days of the entry of this Order, pay a civil money 

penalty in the amount of $325,000 to the Securities and Exchange Commission 

for transfer to the general fund of the United States Treasury, subject to Exchange 
                                                      
2  “Willfully,” for purposes of imposing relief under Section 203(e) of the Advisers Act, “‘means 

no more than that the person charged with the duty knows what he is doing.’”  See Wonsover v. SEC, 

205 F.3d 408, 414 (D.C. Cir 2000) (quoting Hughes v. SEC, 174 F.2d 969, 977 (D.C. Cir. 1949)).  

There is no requirement that the actor “also be aware that he is violating one of the Rules or Acts.”  

Tager v. SEC, 344 F. 2d 5, 8 (2d Cir. 1965). 

 



 

6 

 

Act Section 21F(g)(3). If timely payment is not made, additional interest shall 

accrue pursuant to 31 U.S.C. § 3717. 
 

Payment must be made in one of the following ways: 

 

(1) Respondent may transmit payment electronically to the Commission, 

which will provide detailed ACH transfer/Fedwire instructions upon 

request; 

 

(2) Respondent may make direct payment from a bank account via Pay.gov 

through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or 

 

(3) Respondent may pay by certified check, bank cashier’s check, or United States 

postal money order, made payable to the Securities and Exchange Commission 

and hand-delivered or mailed to:  

 

Enterprise Services Center 

Accounts Receivable Branch 

HQ Bldg., Room 181, AMZ-341 

6500 South MacArthur Boulevard 

Oklahoma City, OK 73169 

 

Payments by check or money order must be accompanied by a cover letter identifying Focused Wealth 

Management as the Respondent in these proceedings, and the file number of these proceedings; a copy 

of the cover letter and check or money order must be sent to Thomas P. Smith, Jr., Associate Regional 

Director, Division of Enforcement, Securities and Exchange Commission, New York Regional Office, 100 Pearl 

Street, Suite 20-100, New York, NY 10004. 

 

D. Amounts ordered to be paid as a civil money penalty pursuant to this Order shall 

be treated as a penalty paid to the government for all purposes, including all tax purposes. To 

preserve the deterrent effect of the civil penalty, Respondent agrees that in any Related Investor 

Action, it shall not argue that it is entitled to, nor shall it benefit by, offset or reduction of any 

award of compensatory damages by the amount of any part of Respondent’s payment of a civil 

penalty in this action (“Penalty Offset”). If the court in any Related Investor Action grants such 

a Penalty Offset, Respondent agrees that it shall, within 30 days after entry of a final order 

granting the Penalty Offset, notify the Commission’s counsel in this action and pay the amount 

of the Penalty Offset to the Securities and Exchange Commission. Such a payment shall not be 

deemed an additional civil penalty and shall not be deemed to change the amount of the civil 

penalty imposed in this proceeding. For purposes of this paragraph, a “Related Investor Action” 

means a private damages action brought against Respondent by or on behalf of one or more 

investors based on substantially the same facts as alleged in the Order instituted by the 

Commission in this proceeding. 

 

By the Commission. 

 

Vanessa A. Countryman 

Secretary 

http://www.sec.gov/about/offices/ofm.htm%3B

	UNITED STATES OF AMERICA
	SECURITIES AND EXCHANGE COMMISSION
	ADMINISTRATIVE PROCEEDING
	I.
	II.
	III.
	Summary
	Respondent
	Recordkeeping Requirements Under the Advisers Act
	FWM’s Policies and Procedures
	FWM’s Recordkeeping Failures
	FWM’s Failure to Preserve Required Records Potentially Compromised and Delayed Commission Matters
	FWM’s Violations
	FWM’s Efforts to Comply

	IV.