SEC v. James D. Burleson; and Burleson & Company, LLC, No. LR-26385, Northern District of California (Aug. 26, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26385 / August 26, 2025 Securities and Exchange Commission v. James D. Burleson, No. 3:24-cv-08246-VC (N.D. Cal. filed Nov. 21, 2024) SEC Obtains Final Judgment in Cherry-Picking Scheme On August 6, 2025, the Securities and Exchange Commission obtained a final judgment against James D. Burleson, who was the managing partner of the formerly SEC-registered investment advisory firm Burleson & Company, LLC, whom the SEC previously charged with engaging in a “cherry-picking” scheme. On November 21, 2024, the SEC filed a complaint alleging that, from August 2020 to October 2022, Burleson used his firm’s omnibus trading account to disproportionately allocate profitable option trades to his personal account and disproportionately allocate unprofitable options trades to his clients’ accounts. Burleson consented to a final judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 17(a) of the Securities Act, and Sections 206(1) and 206(2) of the Investment Advisers Act. Burleson agreed to pay disgorgement of $1,837,700, prejudgment interest in the amount of $216,590, and a civil penalty in the amount of $230,464. As part of the settlement, Burleson also agreed to settle the administrative proceeding the SEC initiated against him, consenting to a bar from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization with the right to apply for reentry after five years. The SEC’s investigation was conducted by Matthew Montgomery and supervised by Robert Conrrad of the Los Angeles Regional Office. The litigation was supervised by Douglas M. Miller.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26385 / August 26, 2025 Securities and Exchange Commission v. James D. Burleson, No. 3:24-cv-08246-VC (N.D. Cal. filed Nov. 21, 2024) SEC Obtains Final Judgment in Cherry-Picking Scheme On August 6, 2025, the Securities and Exchange Commission obtained a final judgment against James D. Burleson, who was the managing partner of the formerly SEC-registered investment advisory firm Burleson & Company, LLC, whom the SEC previously charged with engaging in a “cherry-picking” scheme. On November 21, 2024, the SEC filed a complaint alleging that, from August 2020 to October 2022, Burleson used his firm’s omnibus trading account to disproportionately allocate profitable option trades to his personal account and disproportionately allocate unprofitable options trades to his clients’ accounts. Burleson consented to a final judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 17(a) of the Securities Act, and Sections 206(1) and 206(2) of the Investment Advisers Act. Burleson agreed to pay disgorgement of $1,837,700, prejudgment interest in the amount of $216,590, and a civil penalty in the amount of $230,464. As part of the settlement, Burleson also agreed to settle the administrative proceeding the SEC initiated against him, consenting to a bar from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization with the right to apply for reentry after five years. The SEC’s investigation was conducted by Matthew Montgomery and supervised by Robert Conrrad of the Los Angeles Regional Office. The litigation was supervised by Douglas M. Miller.