SeaCrest to pay $375K to settle charges that it failed to supervise rogue adviser
By 
Aaron Nicodemus2024-12-16T14:45:00
New York-based SeaCrest Wealth Management will pay a $375,000 fine for failing to properly prevent a cherry-picking scheme perpetrated by one of its investment advisers.
The Securities and Exchange Commission (SEC) announced Thursday that it has charged Eric Cobb with engaging in a three-year scheme in which he allocated profitable securities trades to accounts he controlled, and unprofitable trades to the accounts of other clients. He earned approximately $170,000, while his clients lost approximately $188,000, the SEC alleged.
Cobb, an investment adviser at SeaCrest, bought securities in an omnibus account, then waited a day or longer to allocate the trades, in order to see whether the securities had increased or decreased in price. He also engaged in risky trades inconsistent with the conservative investment profiles of his clients, retail investors who included several teachers.
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