The SEC announced this month that it has permanently barred a former broker-dealer accused of defrauding 10 pension plans of more than $40 million.

Jason Sugarman, of Los Angeles, is a former director and indirect owner of broker-dealer and investment adviser Burnham Securities. Working with a partner, Jason Galanis, the SEC alleged that Sugarman purchased two investment advisors and used their assets to purchase Native American tribal bonds.

Sugarman purchased Hughes Capital Management and Atlantic Asset Management, which had a number of pension fund clients the two men took advantage of, the SEC said.

A condition of the bond purchase was that Sugarman was supposed to deposit the proceeds into an annuity to assist the tribal corporation and repay the bondholders, according to the SEC. Instead, he took the proceeds for his own gain including using the money to help buy the foreign insurance company Sugarman used to purchase the two investment advisors, the SEC alleged.

The scheme totaled about $43 million and the SEC initially ordered Sugarman to pay more than $10.2 million in disgorgement, interest, and penalties.

This month, Sugarman agreed to a settlement that carried with it a three-year bar from any association with a broker-dealer or investment advisor. He is eligible for reinstatement after the ban is completed.