The SEC brought an administrative action against Marc A. Freedman, of Gaithersburg, Maryland. The SEC found that, from 1993 to May 2006, Freedman was a shareholder in TriCapital Advisors, Inc., an investment adviser registered with the SEC. During that time, he was TriCapital's president, chief compliance officer and operations manager, and managed his own client accounts.

The SEC found between 1999 and June 2005, Freedman misappropriated approximately $2.38 million from three TriCapital clients. In order to perpetrate his fraud, Freedman, among other things, falsely told the clients that he was purchasing legitimate investments with their funds, and then created false account statements and other documents purportedly reflecting the purchases. The SEC further alleged that Freedman used the misappropriated funds both for his personal benefit and to repay funds earlier taken from two of the clients.

Please click for a copy of the administrative order.