U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25953 / March 22, 2024
Securities and Exchange Commission v. Steven J. Jacobson and Advisor Resource Council, No. 2:23-cv-05650 (E.D. La. filed September 29, 2023)
SEC Obtains Final Judgment Against Advisor Resource Council for Compliance Failures
On February 16, 2024, the Securities and Exchange Commission obtained a final judgment against Advisor Resource Council, a registered investment adviser the SEC previously charged with making false and misleading statements in its ADV brochures and failing to adopt policies and procedures to ensure fair and equitable trade allocations among Advisor Resource Council’s advisory clients.
The SEC’s complaint alleged that Advisor Resource Council made false and misleading statements in its Forms ADV Part 2A, including by misrepresenting that its allocation procedures would be fair and equitable. It alleged that Advisor Resource Council also failed to adopt policies and procedures designed to prevent cherry-picking and failed to maintain certain required books and records.
Advisor Resource Council consented to the entry of a judgment that permanently enjoined it from violating Section 17(a)(2) of the Securities Act of 1933, Sections 204(a), 206(2), and 206(4) of the Investment Advisers Act of 1940, and Rules 204-2(a)(7), 204-2(a)(14), and 206(4)-7 thereunder. Advisor Resource Council also consented to a civil penalty of $300,000.00 Advisor Resource Council was also ordered to comply with certain undertakings, including retaining an independent compliance consultant. Defendant Steven J. Jacobson and Relief Defendant Marian Jacobson continue to litigate the case.
The SEC's litigation is being led by Lynn M. Dean and supervised by Douglas M. Miller, and the investigation was conducted by Colleen Keating and Robert Conrrad, with assistance from Raymond Wolff and Joshua Mallett.