2025-06-17 sec-litreleases litigation_release 65 KB 2,433 chars

SEC v. El Capitan Advisors, Inc.; and Andrew Daniel Nash, No. LR-26327, Central District of California (June 17, 2025) — Press Release

raw: El Capitan Advisors, Inc. and Andrew D. Nash

El Capitan Advisors, Inc. and Andrew D. Nash, No. 2:25-CV-05066 (June 17, 2025)

Caption
Securities and Exchange Commission v. Andrew Daniel Nash and El Capitan Advisors, Inc.
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summary

The SEC obtained final judgments against El Capitan Advisors and Andrew Daniel Nash for misappropriating $15.3 million from a client to fund a luxury home purchase.

paragraph

Andrew Daniel Nash and El Capitan Advisors, Inc. were charged with violating the Investment Advisers Act of 1940 for misappropriating $15.3 million from a public company client. Nash used the funds to purchase a $4.6 million home and concealed the theft by fabricating account statements and overstating assets under management. The final judgments require Nash to disgorge $4.6 million plus interest and a $3.45 million penalty, while El Capitan must disgorge $10.7 million plus interest.

narrative

The SEC obtained final judgments against investment adviser El Capitan Advisors, Inc. and its principal, Andrew Daniel Nash, for misappropriating $15.3 million from a public company advisory client. Nash breached his fiduciary duties by transferring client funds to purchase a $4.6 million home in Santa Barbara. To hide the theft, Nash fabricated account statements and filed overstated Form ADV reports with the SEC. The defendants consented to the judgments without admitting or denying the allegations. Nash was ordered to disgorge $4.6 million plus interest and pay a $3.45 million civil penalty. El Capitan was ordered to disgorge $10.7 million plus approximately $1.84 million in prejudgment interest. Both parties are permanently enjoined from violating the Investment Advisers Act of 1940.

Enriched metadata

Scheme
investment-adviser-fraud (99%)
Court
Central District of California
Case No.
2:25-CV-05066
Outcome
settled
Disgorgement
$10,700,000
Civil penalty
$3,456,942
Entity
El Capitan Advisors, Inc.
CIK
0001745628
Classified investment-adviser-fraud(confidence 99%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Statutes
Sections 206(1), 206(2), and 207 of the Investment Advisers ActSections 206(1), 206(2), and 207 of the Investment Advisers ActSections 206(1), 206(2), and 207 of the Investment Advisers Act
Parties
Securities and Exchange CommissionAndrew Daniel NashEl Capitan Advisors, Inc.
Keywords
nashcapitancapitan advisorsnash capitansecclientsecurities exchangeexchange commissionfinal judgmentsjunemillionadvisorsincandrewcommission

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 7
  • $15.30M $15.3 million $10M–$100M
  • $15.00M $15 million $10M–$100M
  • $10.70M $10.7 million $10M–$100M
  • $4.60M $4.6 million $1M–$10M
  • $3.46M $3,456,942 $1M–$10M
  • $1.84M $1,840,291 $1M–$10M
  • $791K $791,153 $100K–$1M
Entities 7
  • person ansu n. banerjee
  • person douglas m. miller
  • person final judgments
  • person robert c. stillwell
  • agency sec investigation
  • agency Securities and Exchange Commission
  • person william m. rosenthal
Triples 14
  • Securities And Exchange Commission Obtained Final Judgments El Capitan Advisors, Inc. and Andrew Daniel Nash
  • Nash And El Capitan Entered Into Agreement Public Company Advisory Client
  • Nash Transferred Over $15 Million Client’s Accounts
  • Nash Spent Portion Of Money To Buy $4.6 Million Home In Santa Barbara, California
  • Nash Fabricated Account Statements Purported Client Money Still Held At Financial Institutions
  • Nash Filed Form ADV Reports With SEC That Overstated El Capitan’s Assets Under Management
  • Nash And El Capitan Consented To Entry Of Final Judgments Permanent Injunction Against Violating Sections 206(1), 206(2), And 207 Of Investment Advisers Act Of 1940
  • Final Judgments Ordered Nash To Disgorge $4.6 Million Plus Prejudgment Interest Of $791,153.48
  • Final Judgments Ordered El Capitan To Disgorge $10.7 Million Plus Prejudgment Interest Of $1,840,291.82
  • Final Judgments Ordered Nash To Pay Civil Penalty Of $3,456,942
  • William M. Rosenthal Conducted SEC Investigation
  • Ansu N. Banerjee Supervised SEC Investigation
  • Robert C. Stillwell Assisted SEC Investigation
  • Douglas M. Miller Supervised SEC Investigation
PDF (from attached: complaint)
1.The Court has jurisdiction over this action pursuant to Sections 209(d), · Source
Text layers
Extracted body text (2,433c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26327 / June 17, 2025 Securities and Exchange Commission v. Andrew Daniel Nash and El Capitan Advisors, Inc., No. 2:25-CV-05066 (C.D. Cal. filed June 4, 2025) SEC Obtains Final Judgment Against Investment Adviser Charged with Misappropriating Client Funds On June 11, 2025, the Securities and Exchange Commission obtained final judgments against Santa Barbara, California-based investment adviser, El Capitan Advisors, Inc., and its principal, Andrew Daniel Nash, who the Commission charged with misappropriating $15.3 million from an advisory client to whom they owed a fiduciary duty. The SEC’s complaint, filed on June 4, 2025 in the Central District of California, alleged that, in June 2021, Nash and El Capitan entered into an agreement with a public company advisory client to provide cash management services for tens of millions of dollars of the client’s money held at various financial institutions. In reality, according to the SEC’s complaint, in breach of his and El Capitan’s fiduciary duties as investment advisers, Nash transferred over $15 million out of the client’s accounts and spent a portion of that money to buy a $4.6 million home in Santa Barbara, California. The complaint further alleged that, to conceal his theft, Nash fabricated account statements purporting to show the client’s money still held at the financial institutions. Additionally, according to the complaint, Nash filed Form ADV reports with the SEC that materially overstated El Capitan’s assets under management. Nash and El Capitan, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of final judgments permanently enjoining them from violating Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940 by committing or engaging in specified actions or activities relevant to those provisions. The final judgments also orders (i) Nash to disgorge ill-gotten gains of $4.6 million plus prejudgment interest of $791,153.48; (ii) El Capitan to disgorge ill-gotten gains of $10.7 million plus prejudgment interest of $1,840,291.82; and (iii) Nash to pay a civil penalty of $3,456,942. The SEC’s investigation was conducted by William M. Rosenthal and supervised by Ansu N. Banerjee, both of the Los Angeles Regional Office, with the assistance of trial counsel Robert C. Stillwell under the supervision of Douglas M. Miller.
OCR text (2,433c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26327 / June 17, 2025 Securities and Exchange Commission v. Andrew Daniel Nash and El Capitan Advisors, Inc., No. 2:25-CV-05066 (C.D. Cal. filed June 4, 2025) SEC Obtains Final Judgment Against Investment Adviser Charged with Misappropriating Client Funds On June 11, 2025, the Securities and Exchange Commission obtained final judgments against Santa Barbara, California-based investment adviser, El Capitan Advisors, Inc., and its principal, Andrew Daniel Nash, who the Commission charged with misappropriating $15.3 million from an advisory client to whom they owed a fiduciary duty. The SEC’s complaint, filed on June 4, 2025 in the Central District of California, alleged that, in June 2021, Nash and El Capitan entered into an agreement with a public company advisory client to provide cash management services for tens of millions of dollars of the client’s money held at various financial institutions. In reality, according to the SEC’s complaint, in breach of his and El Capitan’s fiduciary duties as investment advisers, Nash transferred over $15 million out of the client’s accounts and spent a portion of that money to buy a $4.6 million home in Santa Barbara, California. The complaint further alleged that, to conceal his theft, Nash fabricated account statements purporting to show the client’s money still held at the financial institutions. Additionally, according to the complaint, Nash filed Form ADV reports with the SEC that materially overstated El Capitan’s assets under management. Nash and El Capitan, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of final judgments permanently enjoining them from violating Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940 by committing or engaging in specified actions or activities relevant to those provisions. The final judgments also orders (i) Nash to disgorge ill-gotten gains of $4.6 million plus prejudgment interest of $791,153.48; (ii) El Capitan to disgorge ill-gotten gains of $10.7 million plus prejudgment interest of $1,840,291.82; and (iii) Nash to pay a civil penalty of $3,456,942. The SEC’s investigation was conducted by William M. Rosenthal and supervised by Ansu N. Banerjee, both of the Los Angeles Regional Office, with the assistance of trial counsel Robert C. Stillwell under the supervision of Douglas M. Miller.

Related documents (1)