The SEC says it has obtained a final judgment from an Illinois federal court against a former chief compliance officer accused of helping his RIA firm defraud its clients.
The court ruled that David Goulding, the former CCO of The Nutmeg Group, helped the company commingle personal assets with investor funds, misled investors about the value of investments, presided over inadequate internal systems and methods for valuing and reporting investments, and transferred investor funds to firms controlled by his family, the SEC says in a litigation release.
In addition, the court ruled he had a “complete lack of qualifications” for the CCO job and thus acted recklessly by taking it on, the SEC says.
The court ordered Goulding to pay $28,935 in disgorgement and prejudgment interest, according to the litigation release.
Additionally, the court entered into final judgment against David Goulding, Inc. and David Samuel, LLC, both of which are owned by Goulding, for receiving ill-gotten gains that were the product of misconduct by Goulding and his father, Randall Goulding, the SEC says.
The SEC barred David Goulding in June 2019, according to the regulator. Nutmeg, meanwhile, was charged back in 2009 with misappropriating client assets.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.