SEC Brings Enforcement Action Against Adviser for Making Errors in Client Account Statements

September 8, 2014

The SEC brought an enforcement action against Douglas E. Cowgill, a resident of Columbus, Ohio, for sending clients account statements with errors. Cowgill has been the sole owner and President of Professional Investment Management, Inc. (PIM), an investment adviser that was registered with the SEC from 1978 until September 30, 2013. He also has been PIM’s Chief Compliance Officer since September 2004.

The SEC found that, since at least December 31, 2010, PIM reported in account statements sent to clients that clients held a total of approximately $7.7 million in a money market fund when, in fact, the clients held a total of approximately $6.9 million in the fund. The SEC further alleged that Cowgill attempted to disguise this shortfall from SEC examiners by entering a fake trade in PIM's account records, and that, to avoid detection, Cowgill provided additional falsified reports to SEC staff and moved money from a cash account holding client funds to the money market fund.

Click http://www.sec.gov/litigation/admin/2014/ia-3913.pdf to access the administrative action.


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Investment Advisers