7.14.2008 The SEC initiated proceedings against Amaroq Asset Management, LLC (Amaroq), a registered investment adviser, alleging that it willfully violated Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder. It also alleged that Dwight Andree Sean O'Neal Jones, the firm's sole stockholder and principal, willfully aided and abetted and caused Amaroq's violations.
The SEC alleged that Jones failed to maintain or produce Amaroq's advisory business records and make them available for review by OCIE, the SEC’s inspection arm, as required by the Advisers Act. It further charged that Amaroq failed to file three annual amendments to its Form ADV and failed promptly to notify the SEC when it changed the location of its principal business office, as also required by law. Finally, the SEC alleged that, although Jones claimed that Amaroq discontinued its advisory business in 2004, Amaroq never notified the SEC of its purported discontinuation, as also required by law. Until mid-2007, the SEC found that Amaroq continued to promote its wealth management program on the internet, where it represented that it was "subject to periodic SEC examinations."
Click http://www.sec.gov/litigation/aljdec/2008/id351jtk.pdf for a copy of the administrative action.