2025-07-09 sec-litreleases litigation_release 64 KB 2,033 chars

SEC v. Eric Cobb, No. LR-26342, Southern District of New York (July 9, 2025) — Press Release

raw: Eric Cobb

Eric Cobb, No. 1:24-cv-09494 (S.D.N.Y. July 9, 2025)

Caption: Securities and Exchange Commission v. Cobb

summary

Former investment adviser Eric Cobb received a final judgment for a cherry-picking scheme that favored his personal accounts over clients, resulting in a permanent industry bar and $160,000 in payments.

paragraph

Eric Cobb, a former investment adviser representative, was ordered to pay over $160,000 to resolve SEC charges of a fraudulent trade allocation scheme. The judgment includes $114,093 in disgorgement, $22,293.33 in prejudgment interest, and a $25,000 civil monetary penalty. Cobb also faces a bar from associating with any broker, dealer, or investment adviser.

narrative

Between June 2019 and mid-April 2022, Eric Cobb engaged in a 'cherry-picking' scheme by disproportionately allocating profitable trades to his personal and wife’s accounts. He executed this by using an omnibus account and delaying allocations to observe price movements, subsequently shifting unprofitable trades to clients. Additionally, Cobb placed clients in highly volatile investments that were inconsistent with their specific investment profiles. To resolve these allegations, Cobb consented to a final judgment that enjoins him from future federal securities law violations. The court ordered him to pay more than $160,000, consisting of $114,093 in disgorgement, $22,293.33 in interest, and a $25,000 penalty. Finally, Cobb was barred from associating with any broker, dealer, or investment adviser.

Enriched metadata

Scheme: investment-adviser-fraud (100%)
Court: Southern District of New York
Case No.: 1:24-cv-09494
Outcome: settled
Disgorgement: $114,093
Civil penalty: $25,000
Victim loss: $160,000
Entity: Eric Cobb

Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →

Extracted insights

Dollar amounts 4

$160K $160,000 $100K–$1M
$114K $114,093 $100K–$1M
$25K $25,000 $10K–$100K
$22K $22,293 $10K–$100K

Entities 7

person against eric cobb
person bennett ellenbogen
person eric cobb
person Richard Primoff
agency sec's litigation against eric cobb
agency Securities and Exchange Commission
court u.s. district court for the southern district of new york

Triples 13

Securities And Exchange Commission obtains final judgment Eric Cobb
Eric Cobb engaged in a long-running fraudulent trade allocation scheme commonly referred to as cherry-picking
Eric Cobb disproportionately allocated profitable trades to his personal and wife's accounts
Eric Cobb allocated unprofitable trades to certain client accounts
Eric Cobb executed the scheme by buying securities in an omnibus account and waiting a day or longer to allocate trades
Eric Cobb placed clients in highly volatile and risky investments inconsistent with their investment profiles
Securities And Exchange Commission alleged Eric Cobb engaged in a cherry-picking scheme
U.S. District Court For The Southern District Of New York entered final judgment against Eric Cobb
Eric Cobb consented to entry of judgment enjoining him from violating antifraud provisions of federal securities laws
Eric Cobb ordered to pay disgorgement of $114,093 plus prejudgment interest of $22,293.33 and civil monetary penalty of $25,000
Securities And Exchange Commission investigated Eric Cobb's conduct
Bennett Ellenbogen led SEC's litigation against Eric Cobb
Richard Primoff led SEC's litigation against Eric Cobb

View original SEC litigation releasesec.gov

Extracted body text (2,033c)

U.S. Securities and Exchange Commission Litigation Release No. 26342 / July 9, 2025 Securities and Exchange Commission v. Cobb, Civil Action No. 1:24-cv-09494 (S.D.N.Y. filed Dec. 12, 2024) SEC Obtains Final Judgment Against Former Investment Adviser Representative in Cherry-Picking Scheme On July 2, 2025, the U.S. District Court for the Southern District of New York entered a final judgment against Eric Cobb, a former South Carolina-based investment adviser representative, who the SEC alleged engaged in a long-running fraudulent trade allocation scheme, commonly referred to as “cherry-picking.” The judgment enjoins Cobb from violating certain provisions of the federal securities laws and orders Cobb to pay more than $160,000. According to the SEC’s complaint, from at least June 2019 to mid-April 2022, Cobb disproportionately allocated profitable trades to his personal and wife’s accounts, and unprofitable trades to certain client accounts. Cobb allegedly executed the scheme by buying securities in an omnibus account and then often waiting a day or longer to allocate the trades, which allowed him to see whether the securities had increased in price. The SEC’s complaint also alleged that Cobb routinely placed clients in highly volatile and risky investments that were inconsistent with their investment profiles. Cobb, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of the judgment that enjoins him from violating the antifraud provisions of the federal securities laws, imposes a bar from associating with any broker, dealer, or investment adviser, orders disgorgement of $114,093 plus prejudgment interest thereon of $22,293.33, and orders a civil monetary penalty of $25,000. The SEC’s investigation was conducted by Bennett Ellenbogen, James Flynn, Richard Primoff, and Lindsay S. Moilanen and was supervised by Sheldon L. Pollock, all of the SEC’s New York Regional Office. The litigation was led by Mr. Ellenbogen and Mr. Primoff and supervised by Alex Vasilescu.

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