SEC v. Robert M. Vance, No. LR-26139, Eastern District of California (Sept. 27, 2024) — Press Release
raw: Robert M. Vance
Robert M. Vance, No. 1:24-cv-01150-BAM (Sept. 27, 2024)
The SEC charged former broker Robert M. Vance with violating Regulation Best Interest by recommending high-risk L Bonds to retail customers unsuitable for their risk profiles.
The SEC charged Robert Vance with violating Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 for failing to meet the Care Obligation under Regulation Best Interest. Between June 2020 and January 2022, Vance recommended speculative L Bonds from GWG Holdings, Inc. to retail clients, many of whom were near retirement age. The complaint alleges Vance failed to exercise reasonable diligence and ignored disclosures regarding the issuer's potential inability to continue as a going concern.
The SEC has charged former registered representative Robert M. Vance with violating Regulation Best Interest's Care Obligation. Between June 2020 and January 2022, Vance recommended high-risk, speculative L Bonds to retail customers, many of whom had moderate risk tolerances and were near retirement age. Despite disclosures that the bonds required substantial financial resources, Vance failed to exercise reasonable diligence regarding their risks. He continued these recommendations even after the issuer, GWG Holdings, Inc., disclosed substantial doubt about its ability to continue as a going concern in November 2021. The SEC's complaint, filed in the Eastern District of California, alleges Vance violated Rule 15l-1(a)(1) of the Securities Exchange Act of 1934. Ultimately, Vance is accused of making recommendations for which he had no reasonable basis to believe were in the customers' best interests.
Exhibits & Attached Documents (1)
Extracted insights
- person anne c. mckinley
- person ariella guardi
- company gwg holdings, inc.
- person jedediah forkner
- person jonathon grobelski
- person robert vance
- agency sec investigation
- agency Securities and Exchange Commission
- SEC charged Robert Vance
- Robert Vance failed to comply with Regulation Best Interest's Care Obligation
- Robert Vance recommended L Bonds
- GWG Holdings, Inc. disclosed High Degree Of Risk
- Robert Vance recommended purchase of L Bonds
- SEC charges Vance
- Jedediah Forkner conducted SEC Investigation
- Jonathon Grobelski conducted SEC Investigation
- Anne C. McKinley supervised SEC Investigation
- Ariella Guardi will lead Litigation
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26139 / September 27, 2024 Securities and Exchange Commission v. Robert M. Vance, Civil Action No. 1:24-cv-01150-BAM (E.D. Cal. filed Sept. 27, 2024) SEC Charges Broker with Violating Regulation Best Interest The Securities and Exchange Commission charged California resident Robert Vance - a former registered representative of a broker-dealer - with failing to comply with Regulation Best Interest's Care Obligation when recommending high-risk debt securities known as L Bonds to his retail brokerage customers. According to the SEC's complaint, between June 2020 and January 2022, Vance recommended that certain of his retail customers, many of whom were at or near retirement age and had moderate risk tolerances, purchase L Bonds despite disclosures by the issuer, GWG Holdings, Inc., that the L Bonds involved a high degree of risk, may be considered speculative, and were only suitable for investors with substantial financial resources and no need for liquidity. The complaint also alleges that Vance continued to recommend that certain retail customers purchase L Bonds even after GWG disclosed in November 2021 that there was substantial doubt about the company's ability to continue as a going concern. The complaint further alleges that Vance failed to exercise reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with L Bonds and also recommended the purchase of L Bonds to at least four retail customers for whom he did not have a reasonable basis to believe the recommendations were in the customers' best interest. The SEC's complaint, filed in the U.S. District Court for the Eastern District of California, charges Vance with violations of Rule 15l-1(a)(1) of the Securities Exchange Act of 1934. The SEC's investigation was conducted by Jedediah Forkner and Jonathon Grobelski and was supervised by Anne C. McKinley of the SEC's Chicago Regional Office. The litigation will be led by Ariella Guardi.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26139 / September 27, 2024 Securities and Exchange Commission v. Robert M. Vance, Civil Action No. 1:24-cv-01150-BAM (E.D. Cal. filed Sept. 27, 2024) SEC Charges Broker with Violating Regulation Best Interest The Securities and Exchange Commission charged California resident Robert Vance - a former registered representative of a broker-dealer - with failing to comply with Regulation Best Interest's Care Obligation when recommending high-risk debt securities known as L Bonds to his retail brokerage customers. According to the SEC's complaint, between June 2020 and January 2022, Vance recommended that certain of his retail customers, many of whom were at or near retirement age and had moderate risk tolerances, purchase L Bonds despite disclosures by the issuer, GWG Holdings, Inc., that the L Bonds involved a high degree of risk, may be considered speculative, and were only suitable for investors with substantial financial resources and no need for liquidity. The complaint also alleges that Vance continued to recommend that certain retail customers purchase L Bonds even after GWG disclosed in November 2021 that there was substantial doubt about the company's ability to continue as a going concern. The complaint further alleges that Vance failed to exercise reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with L Bonds and also recommended the purchase of L Bonds to at least four retail customers for whom he did not have a reasonable basis to believe the recommendations were in the customers' best interest. The SEC's complaint, filed in the U.S. District Court for the Eastern District of California, charges Vance with violations of Rule 15l-1(a)(1) of the Securities Exchange Act of 1934. The SEC's investigation was conducted by Jedediah Forkner and Jonathon Grobelski and was supervised by Anne C. McKinley of the SEC's Chicago Regional Office. The litigation will be led by Ariella Guardi.