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SEC Rebukes Investment Advisory Firm for Ignoring CCO Pleas

Jaclyn Jaeger | June 26, 2015

The Securities and Exchange Commission last week suspended for one year the former president of an investment advisory firm over claims that he consistently dedicated insufficient resources to the firm’s chief compliance officer, which contributed substantially to various compliance failures.

As part of the settlement, Ron Strauss, president of registered investment adviser Pekin Singer until last year (he is now a senior adviser to the firm), will pay a civil penalty of $45,000. In addition, the firm will pay a $150,000 civil penalty, while two of its former executives will pay a penalty of $45,000 each.

According to the SEC’s June 23 order, “Pekin Singer failed to conduct timely annual compliance program reviews in 2009 and 2010 and failed to implement and enforce provisions of its policies and...

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