An RIA that the Securities and Exchange Commission says filed false ADV forms and vastly exaggerated its assets has settled the agency's case against it.
Delta Global Advisors Inc. of Huntington Beach, Calif., and its founder, owner and principal, Charles P. Hanlon, agreed in the settlement to have the firm's investment advisor registration revoked and not file false ADV forms. Delta and Hanlon did not admit any wrongdoing. Delta's corporate license in California has already been suspended.
Delta and Hanlon were charged with vastly overstating the firm's assets as up to $1.5 billion when in fact the firm had as little as $9 million under management at times and failed to disclose this information to clients.
Delta filed Form ADV with the SEC inaccurately reflecting the exaggerated assets, the SEC says. It also failed to reveal to clients action taken by Finra suspending Hanlon from all registration capacities and failed to reveal the precarious financial status of the company to clients.
At various times the SEC asked Delta to correct its ADV filings but it was not done, the SEC says. The false forms were filed between 2006 and 2008. Delta also kept false information on it Web site exaggerating its assets, according to the agency.