5.21.2009 As part of an ongoing investigation, the SEC obtained an emergency court order to freeze the assets of a Wisconsin-based investment adviser—James Putnam, the founder, majority owner and CEO of Wealth Management LLC. Putnam is charged with engaging in a kickback scheme and other fraudulent conduct involving six unregistered investment pools it managed. The SEC alleges that Putnam and the firm’s former President and Chief Investment Officer—Simone Fevola—each accepted $1.24 million in undisclosed payments derived from investments made by the unregistered investment pools. The SEC also alleges that Wealth Management, Putman and Fevola misrepresented the safety and stability of the two largest investment pools and placed clients into these investments even though they were inconsistent with some clients’ objectives.
Click http://www.sec.gov/news/press/2009/2009-119.htm to access the SEC’s press release.