On August 10, 2022, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against IFP Advisors, LLC (“IFP”). In the Order, the Commission found that from January 2011 to at least December 2018, Richard Keith Robertson (“Robertson”), an investment adviser representative associated with IFP, engaged in a cherry-picking scheme whereby he unfairly allocated purchases of securities between his personal and family accounts and his other IFP clients’ accounts and disproportionately allocated unprofitable trades to his other advisory clients. IFP failed to supervise Robertson, failed to implement policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules by its supervised persons, and made false and misleading statements in its Forms ADV concerning supposed safeguards it had to prevent investment adviser representatives from placing their own interests ahead of those of its advisory clients. The Commission ordered IFP to pay a $400,000.00 civil money penalty to the Commission, pursuant to the payment plan detailed therein. The Commission created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid can be distributed to harmed investors (the “Fair Fund”). The Fair Fund is expected to include all funds collected in the Commission’s related proceeding, In the Matter of Richard Keith Robertson. See the Commission’s Order: Release No. IA-6086.

Also on August 10, 2022, the Commission instituted and simultaneously settled separate, but related administrative and cease-and-desist proceedings against Robertson. The Commission ordered Robertson to pay $592,437 in disgorgement, $28,173.12 in prejudgment interest, and a $300,000 civil money penalty to the Commission, pursuant to a payment plan detailed therein. The Commission created a Fair Fund, so the penalty paid, along with the disgorgement and prejudgment interest paid, can be distributed to harmed investors, and further ordered that it may be combined with the monies paid in In the Matter of IFP Advisors, LLC. See the Commission’s Order: Release No. 34-95462.

The Commission holds a total of $870,605.25 in the Fair Fund, comprised of the monies collected from IFP and Robertson, pursuant to their respective Orders, in a Commission-designated account at the U.S. Department of the Treasury. Any additional funds received pursuant to the Orders, along with any interest accrued, will be added to the Fair Fund.

On March 21, 2023, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-97175.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov