5.26.2009 The SEC filed suit against Jacques R. Gendreau, a California investment adviser, and his firm, Gendreau & Associates, Inc., for allegedly misrepresenting his strategies for clients’ funds as being low-risk and engaging in high-risk investing that led to heavy losses. The SEC states that Gendreau had about $97 million in assets under management and defrauded about 185 clients. The SEC alleges that Gendreau engaged in high-risk investing by over-utilizing margin and investing too heavily in the financial industry. When Gendreau was unable to meet margin calls, clients were allegedly left on the hook for $300,000 in loans for $12 million in losses.
Click http://www.sec.gov/litigation/litreleases/2009/lr21057.htm to access the SEC’s press release.