6.26.2009 The SEC barred Mark R. Hamlin, a Michigan investment adviser, from the industry based, in part, on misrepresentations he made to clients.
Hamlin represented to investors that he was a day trader and that he would invest their funds, along with other investors’ funds, in the stock market, and that he would send the investors weekly reports of his trading and their profits or losses. The SEC also alleged that in the weekly trading reports, Hamlin represented that the investors earned profits in all but seven weeks of trading. The complaint alleged that, contrary to his representations, among other things, Hamlin invested only $1,248,370 of the approximately $2 million that he received from the investors. The SEC further alleged that Hamlin subsequently transferred into his bank accounts approximately $627,000 from his and KFT’s brokerage accounts into his bank accounts and used this money, along with the $759,000 in investor funds that he never invested, to meet $755,000 in investor withdrawal requests and to pay $668,000 in personal expenses. The SEC also alleged that from April 2005 through June 2008, Hamlin’s trading resulted in losses of approximately $644,862. The complaint alleged that Hamlin’s trading was profitable during only nine of the 39 months of the offering and generated a total of only $22,150 in profit.
Click http://www.sec.gov/litigation/admin/2009/ia-2896.pdf to access the SEC’s administrative action.