On November 16, 2010, the SEC charged Thrasher Capital Management, LLC and James Perkins, its chief executive officer, for failing to make Thrasher’s books and records available to the staff of the SEC and for untrue statements of material facts in Thrasher’s Form ADV.
According to the SEC’s order, Mr. Perkins failed to make Thrasher’s books and records available after the staff requested the items following an office visit. The books and records were not produced until a subpoena was issued. In addition, according to the SEC, Thrasher’s Form ADV inaccurately disclosed that 40% of its clients were high net worth at a time when Thrasher did not have any high net worth clients and the Form ADV failed to disclose an individual with a significant ownership interest. As a result, the SEC revoked Thrasher’s registration as an investment adviser and suspended Mr. Perkins from any association with an investment adviser for a period of nine months.