SEC v. Parker Terrill Austin; and Embarcadero Capital Advisors, Inc., No. LR-26395, Central District of California (Sept. 11, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26395 / September 11, 2025 Securities and Exchange Commission v. Parker Terrill Austin and Embarcadero Capital Advisors, Inc., No. 8:25-cv-02034 (C.D. Cal., filed Sept. 10, 2025) SEC Charges California Investment Adviser and His Advisory Firm with Fraud and Improper Disclosure of Client Nonpublic Personal Information On September 10, 2025, the Securities and Exchange Commission charged California resident Parker Terrill Austin and the investment advisory firm he established, Embarcadero Capital Advisors, Inc., with fraud related to his efforts to obtain clients for Embarcadero, a firm he planned to launch while employed at a different investment advisory firm. According to the SEC’s complaint, by spring 2023, Austin harbored ambitions of starting his own investment advisory firm. To that end, as alleged, Austin sent to his personal email nonpublic personal information belonging to his then-employer’s clients, including names and account balances, and directed clerical employees to send to his personal email client nonpublic personal information, including names, addresses, phone numbers, email addresses, account values, and fees charged. On at least one occasion, according to the complaint, Austin forwarded the information to his future business partner at Embarcadero. The complaint also contends that Austin, while at his former employer, breached his fiduciary duty to a client by placing the client in investments that were contrary to the client’s instructions. Upon learning of Austin’s misconduct, as alleged, Austin’s former employer terminated Austin. Shortly after being terminated, Austin launched his advisory firm, Embarcadero, and, as alleged in the complaint, engaged in a scheme to fraudulently induce clients to join Embarcadero, misrepresenting Austin’s disciplinary history and termination at his prior firm on Embarcadero’s website and other publicly available informational brochures Embarcadero filed with the SEC. The SEC’s complaint, filed in federal court in the Central District of California, charges Embarcadero and Austin with violations of the antifraud provisions Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940. The complaint further alleges that Austin aided and abetted Embarcadero’s violation of Sections 206(1), 206(2), and 207 of the Advisers Act and aided and abetted a violation of Rule 10 of Regulation S-P that requires advisers to maintain the privacy of client information. The complaint seeks permanent injunctions, including an injunction prohibiting Austin from associating with any broker, dealer, or investment adviser, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was conducted by Jonathan T. Menitove of the Enforcement Division’s Asset Management Unit and Marc Jones of the Boston Regional Office, under the supervision of Brianna Ripa and Corey Schuster of the Asset Management Unit. The SEC’s litigation will be led by Mr. Jones and Mr. Menitove.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26395 / September 11, 2025 Securities and Exchange Commission v. Parker Terrill Austin and Embarcadero Capital Advisors, Inc., No. 8:25-cv-02034 (C.D. Cal., filed Sept. 10, 2025) SEC Charges California Investment Adviser and His Advisory Firm with Fraud and Improper Disclosure of Client Nonpublic Personal Information On September 10, 2025, the Securities and Exchange Commission charged California resident Parker Terrill Austin and the investment advisory firm he established, Embarcadero Capital Advisors, Inc., with fraud related to his efforts to obtain clients for Embarcadero, a firm he planned to launch while employed at a different investment advisory firm. According to the SEC’s complaint, by spring 2023, Austin harbored ambitions of starting his own investment advisory firm. To that end, as alleged, Austin sent to his personal email nonpublic personal information belonging to his then-employer’s clients, including names and account balances, and directed clerical employees to send to his personal email client nonpublic personal information, including names, addresses, phone numbers, email addresses, account values, and fees charged. On at least one occasion, according to the complaint, Austin forwarded the information to his future business partner at Embarcadero. The complaint also contends that Austin, while at his former employer, breached his fiduciary duty to a client by placing the client in investments that were contrary to the client’s instructions. Upon learning of Austin’s misconduct, as alleged, Austin’s former employer terminated Austin. Shortly after being terminated, Austin launched his advisory firm, Embarcadero, and, as alleged in the complaint, engaged in a scheme to fraudulently induce clients to join Embarcadero, misrepresenting Austin’s disciplinary history and termination at his prior firm on Embarcadero’s website and other publicly available informational brochures Embarcadero filed with the SEC. The SEC’s complaint, filed in federal court in the Central District of California, charges Embarcadero and Austin with violations of the antifraud provisions Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940. The complaint further alleges that Austin aided and abetted Embarcadero’s violation of Sections 206(1), 206(2), and 207 of the Advisers Act and aided and abetted a violation of Rule 10 of Regulation S-P that requires advisers to maintain the privacy of client information. The complaint seeks permanent injunctions, including an injunction prohibiting Austin from associating with any broker, dealer, or investment adviser, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was conducted by Jonathan T. Menitove of the Enforcement Division’s Asset Management Unit and Marc Jones of the Boston Regional Office, under the supervision of Brianna Ripa and Corey Schuster of the Asset Management Unit. The SEC’s litigation will be led by Mr. Jones and Mr. Menitove.