The U.S. Commodity Futures Trading Commission filed an order instituting proceedings and settling charges against Convergent Wealth Advisors LLC.
The CFTC order states that former Convergent CEO David Zier, in connection with his operation of ZAM LLC, solicited certain Convergent clients for investment in ZAM from 2007 to 2014. Zier solicited such investment in ZAM while he was an agent of Convergent. Zier also drew on Convergent resources to execute certain ZAM related client transactions. The order finds that Convergent, as Zier's employer, is responsible for Zier's acts and omissions.
The order also finds that Zier made false representations on ZAM's performance.
The order requires Convergent to pay an $800,000 civil monetary penalty and prohibits the company from violating the provisions of the Commodity Exchange Act and CFTC Regulations.
In 2014, Zier was found dead at his lake house in an apparent suicide. A compliance team at Convergent in early October 2014 had started to question Zier regarding discrepancies in the investment fund that he ran outside the company for his friends and family.