Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Files Charges Against Bruderman Asset Management and Principal for Concealing Misuse of Investment Funds

Posted on October 17th, 2023 at 1:16 PM
SEC Files Charges Against Bruderman Asset Management and Principal for Concealing Misuse of Investment Funds

From the desk of Jim Eccleston at Ä¢¹½´«Ã½ 

The Securities and Exchange Commission (SEC) has announced that Bruderman Asset Management LLC (BAM), based in New York, and its principal, Matthew J. Bruderman, have agreed to settle charges stemming from their failure to disclose the misuse of proceeds obtained from investment advisory clients and their failure to establish adequately designed written policies and procedures related to conflict of interest disclosures.

As per the SEC's order, between February 2017 and August 2021, BAM and Bruderman advised at least 13 clients to invest at least $6.1 million in three companies in which Bruderman had substantial ownership interests and decision-making authority. The SEC's order asserts that BAM and Bruderman neglected to inform these clients that their investments would be temporarily diverted for other purposes, including funding BAM's payroll and repaying loans owed to Bruderman or affiliated companies. Additionally, BAM, under Bruderman's leadership, failed to implement adequately designed written policies and procedures for the disclosure of conflicts of interest.

BAM and Bruderman, without admitting or denying the SEC's findings, have agreed to cease and desist from engaging in or violating multiple provisions of the Investment Advisers Act of 1940. The order also imposes a censure and a civil penalty of $250,000.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.