SEC Charges Miami-Based Adviser With Hiding Trading Losses and Diverting Client Funds

Wednesday, November 14th, 2012

On November 9, 2012, the Securities and Exchange Commission (the “SEC”) charged a Miami-based investment adviser with defrauding his clients by concealing trading losses and diverting investor funds for personal use.

The SEC has alleged that Anand Sekaran and his firm Wasson Capital Advisors Ltd. fabricated documents showing illusory profits after his trading strategy became unprofitable in 2008 and produced substantial losses for clients.  Sekaran also allegedly misused client funds to pay various personal and business expenses, as well as collecting fees in excess of what he was due under the arrangements he had with clients.

According to the SEC’s announcement regarding the matter, Sekaran and Wasson Capital agreed to resolve the SEC’s charges as well as a parallel criminal action announced by the U.S. Attorney’s Office for the Southern District of New York.

According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Sekaran provided investors with a spreadsheet inaccurately showing that Wasson was profitable.  He also apparently inflated account balances on some clients’ account statements, using the letterhead of a defunct British Virgin Islands trust company for one client and the letterhead of a New Zealand firm for another client.

In settling the SEC’s charges, Sekaran and Wasson Capital consented to a final judgment imposing permanent injunctions from future violations of the antifraud provisions of the federal securities laws.  Sekaran separately consented to an SEC order barring him from the securities industry and penny stock industry.  Sekaran is further required to pay $2.3 million to satisfy restitution and forfeiture orders in the criminal matter.

The foregoing information, which is publicly available on the SEC’s website, is being provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Boca Raton, Florida and Chicago, Illinois.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.  To speak with a securities attorney, please call the firm at 561-807-6804.

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