Adviser Charged with Making a Materially False Form ADV Filing and Other Compliance Violations

November 20, 2012

The SEC brought administrative proceedings against Barthelemy Group LLC ( “BG”), an investment adviser registered with the states of New York and New Jersey for improper SEC registration, materially false Form ADV filings, and compliance and record keeping failures.  BG is owned and managed by Evens Barthelemy.

 

The SEC stated that Barthelemy improperly registered BG with the SEC in July 2009 under the Advisers Act multi-state adviser exemption from the prohibition against SEC registration, and thereafter improperly maintained BG’s registration under the Act’s $25 million assets under management (“AUM”) exemption.1 At all times since initially registering with the SEC, however, BG had no more than $5 million in AUM and was required to register in at most three states (rather than the thirty required under the multi-state exemption).

 

Further, in response to a request from the SEC’s staff during a 2010 investment adviser exam of BG, Barthelemy misrepresented his firm’s AUM as $26.28 million instead of $2.628 million in a spreadsheet. When questioned by the Exam staff later, Barthelemy conceded the inaccuracy, and in June 2011 Barthelemy withdrew his firm’s SEC registration. In addition, BG lacked adequate compliance policies and procedures and failed to maintain various books and records required by the Advisers Act related to codes of ethics and providing or offering the firm’s Form ADV Part II (now Form ADV Part 2A) to clients.

Click http://www.sec.gov/litigation/admin/2012/ia-3503.pdf for the administrative action.


Categories

Investment Advisers, Investment Companies