“The commission has found no evidence that Bóveda operates an interactive website, that is, that it possesses the necessary computer software-based models or applications which would permit clients to provide personal information through its website, and thereby enable Bóveda to meet the requirements of an internet investment advisor,” the filing said. “Moreover, Bóveda’s reported number of clients (one) and its claimed assets under management do not appear to support the software-based models and applications needed for it to operate as an internet investment advisor.”
Witherspoon also allegedly reported in the firm’s ADV forms that he was a CFP, although he was not. And an examination of the firm’s accounts revealed that while the firm claimed assets under management between $5 million and $16 million from 2014 to January 2021, the firm never had more than $62,000 and frequently had $250 or less, the filing said.
All in all, the SEC filed 12 counts of misconduct against Witherspoon and the firm.