HCR Wealth Advisors
This one is a doozy. A rep for the firm, which has around $1.2B AUM,”defrauded and misappropriated funds from clients from 2012-2016.“. HCR was censured and ordered to pay $328,912 to reimburse the client and $200,000 to the SEC as a civil penalty. HCR used Schwab and TD Ameritrade to custody and clear. They have not filed a supplemental ADV to notice their clients of a change in custodians. I reached out to the company by email and phone and they did not respond. It would appear they were not forced off the trading platforms and that they are still using the now combined entity to custody.
if you review the SEC v Schwab case wherein Schwab was busted for not filing Suspicious Activity Reports, you will see examples of actions that small AUM RIA’s purportedly took that resulted in Schwab terminating the contract, and notifying all the RIA clients of such action. None were as egregious as this.
Investigate for yourself. The evidence is clear. If you are a small AUM RIA there is no lifeboat for you on the Schwab ship.
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