The Securities and Exchange Commission today announced charges against Lindner Capital Advisors, Inc. (LCA), a registered investment adviser based in Marietta, Georgia, and its founder and principal, Robert J. Lindner, for false statements in a report filed with the SEC and for failing to properly implement compliance policies and procedures.

According to the SEC's complaint, in a report filed on April 29, 2019, LCA and Lindner falsely stated that the firm had no financial condition that was reasonably likely to impair its ability to meet contractual obligations to clients. As alleged, at the time of the filing LCA was heavily leveraged and increasingly unable to meet its basic operating expenses. The complaint further alleges that in May 2018, after an SEC examination by the Office of Compliance, Inspections and Examinations, staff sent a letter to LCA outlining certain compliance deficiencies. According to the complaint, from August 2018 to December 2019, LCA and Lindner failed to implement and enforce the policies and procedures the firm adopted in response to the letter.

The SEC's complaint, filed in U.S. District Court in Atlanta, Georgia, charges LCA and Linder with violating the antifraud provisions of Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940. The complaint also charges LCA with violating Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder, and Lindner with aiding and abetting LCA's violations of the charged provisions. The complaint seeks permanent injunctions from future violations of these provisions and civil monetary penalties.

The SEC's continuing investigation is being conducted by John M. Nemeth of the SEC's Atlanta Regional Office and supervised by Peter J. Diskin. The SEC's litigation is being led by William P. Hicks and supervised by Graham Loomis.