Washington, D.C., Sept. 24, 2007 – LAWFUEL – The Legal Newswire – The Securities and Exchange Commission today charged investment adviser and former NFL player Dwight Sean Jones with failing to allow the Commission staff to examine his business records, as required by the federal securities laws.
In the administrative proceeding instituted today, the Commission’s Division of Enforcement alleges that Jones – who at one point claimed to manage more than $40 million in assets for his clients (primarily athletes) – refused to produce or allow the inspection of his advisory business records. After repeatedly failing to respond to the Commission staff, the Division alleges, Jones ultimately claimed that all his records had either been destroyed in a fire or inadvertently sold by a storage company.
“The Commission’s examination function is critical to fulfilling its investor protection mandate, and today’s action confirms that investment advisers must comply with Commission examinations,” said Helane L. Morrison, Regional Director of the SEC’s San Francisco Regional Office.
In the Order Instituting Proceedings, the Division of Enforcement alleges that Jones and his firm, Amaroq Asset Management, failed to make documents available for review by the Commission’s staff as required by law. The Order also alleges that although Jones claims that Amaroq discontinued business in 2004, Amaroq continued to maintain a website until mid-2007 touting its wealth management programs and that it was “subject to periodic SEC examinations.” However, the Order alleges that Jones (a resident of Missouri City, Texas, although Amaroq purports to maintain a Beverly Hills, Calif. address) failed to permit the examination of Amaroq’s records and later told the Commission staff that the $44 million advisory business no longer possessed any records whatsoever.
The SEC’s Division of Enforcement alleges that Amaroq willfully violated the examination and reporting requirements of the Investment Advisers Act of 1940 and rules thereunder, and that Jones willfully aided and abetted and caused Amaroq’s violations. An administrative hearing will be scheduled to determine whether remedial actions are appropriate.List your legal jobs on the LawFuel Network