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Ex-Advisor Forks Out $1.2 Million to SEC

By Alex Padalka June 19, 2018

The securities watchdog has reached a $1.2 million settlement with a former financial advisor the SEC accused of bilking investors out of hundreds of thousands of dollars, according to a litigation release from the regulator.

In December the SEC charged Ronald Fossum, Jr. with allegedly raising money through unregistered securities offerings of three investment funds he owned and controlled. In all, Fossum allegedly raised over $20 million from more than 100 investors, the SEC said at the time. The former advisor misappropriated some of the funds to cover his federal taxes and pay for international travel, among other things, and also lived rent-free in a home owned by one of the funds, according to that complaint.

Earlier this month, the SEC reached a settlement with Fossum in a federal district court in the Western District of Washington. The regulator ordered Fossum to disgorge $840,729 and pay a prejudgment interest of $110,823 and a civil penalty of $320,000, according to the litigation release.


Fossum also reached a settlement in separate administrative proceedings, agreeing to be barred from the industry without admitting or denying the SEC’s findings, according to the regulator.

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Tags:  Fees and compensation , Staffing and recruiting , Regulatory/legal issues

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