Jordan’s 16 funds were never audited, according to the SEC’s complaint, though the state’s complaint indicates that he told prospective clients that the strategies would receive annual independent audits.
Both the SEC and California regulators alleged that Jordan failed to disclose a prior Finra disciplinary history. In 2012, he was assessed a $21,300 fine and a three-month suspension after he allegedly sold $90,000 in unsuitable capital appreciation bonds to his clients, according to Finra’s BrokerCheck website. The issuers of the bonds allegedly used the capital as a slush fund for business and personal expenses, depleting all the investor funds.
In 2010, Jordan was permitted to resign from the Securities Equity Group after allegedly selling securities that were not authorized by his employer.
In May 2017, the funds and other Jordan-affiliated entities sought bankruptcy protection, each claiming liabilities of up to $10 million, and fell under the control of a restructuring officer.