The Securities and Exchange Commission today charged Oscar Haynes Morris, Jr. and the investment adviser he owned, Lakeside Capital Partners, LP, with misappropriating more than $100,000 from two investment partnerships they managed.

According to the SEC's complaint, Morris and Lakeside misappropriated approximately $55,184 from a private oil and gas partnership that was an advisory client of Lakeside, and then used the funds to cover expenses of another entity controlled by Morris. The complaint also alleges that the defendants misappropriated $65,000 in investment returns generated for a second partnership advised by Lakeside, and spent those funds on Morris's personal expenses, including car payments, club dues, and credit card bills.

The SEC charged Lakeside and Morris with violating the anti-fraud provisions of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-8 thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and civil money penalties against the defendants.

The investigation was conducted by Senior Counsel Robert C. Hannan and supervised by Assistant Director Timothy S. McCole. Senior Trial Counsel Janie L. Frank is lead counsel for the SEC in the litigation.