trending Market Intelligence /marketintelligence/en/news-insights/trending/hhniasuecmtl1xn-zcnywa2 content esgSubNav
In This List

SEC censures Mohlman Asset Management over conflicted transactions

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


SEC censures Mohlman Asset Management over conflicted transactions

The SEC has censured Mohlman Asset Management LLC and barred Louis Mohlman Jr., who owned and controlled the company, from working for a broker/dealer or registered investment adviser for two years.

In 2012 and 2013, Mohlman, directly and through Mohlman Asset Management, allegedly engaged investment adviser Mohlman Asset Management Fund II in a conflicted transaction with one of the company's advisory clients. In another conflicted transaction, Mohlman allegedly used the fund's assets to make an unsecured personal loan to other individuals. Additionally, he used the fund's asset to pay compliance-related fees.

The complaint also alleged that Mohlman failed to timely disclose a financial conflict of interest created by an agreement to receive a forgivable loan from LPL Financial in exchange for clients using LPL Financial for custodial and brokerage services before clients switched to LPL Financial.

In addition, the complaint alleged that Mohlman Asset Management and Mohlman filed materially inaccurate Forms ADV that did not disclose the financial conflict of interest created by the forgivable LPL Financial loan.

The SEC has accepted Mohlman Asset Management's and Mohlman's offer to settle the charges.