In the Matter of Noonan Capital Management, LLC
Securities and Exchange Commission
Investment Advisers Act Release No. 3609 (2013)
- Written by Craig Scheer, JD
Facts
Noonan Capital Management, LLC (NCM), a Georgia-based investment adviser registered with the Securities and Exchange Commission (SEC), charged its clients much higher fees than it told clients they would be charged, as represented in its Form ADV filed with the SEC and in statements NCM made to clients. NCM represented that its advisory fees would range from 1 to 1.5 percent of assets under management (AUM), but the fees NCM charged were far above this range, with some clients paying up to 7 percent of AUM. NCM and Timothy George Noonan, NCM’s sole owner, chief compliance officer, manager, and employee, also misrepresented the amount of NCM’s AUM in NCM’s Form ADV, falsely claiming this amount was more than the $25 million needed for NCM to be eligible to register as an investment adviser with the SEC. In addition, NCM failed to maintain books and records required under the Investment Advisers Act of 1940 (Advisers Act) and to provide clients with required information about NCM from Part 2 of Form ADV. The SEC brought an administrative proceeding against NCM and Noonan for violations of the Advisers Act.
Rule of Law
Issue
Holding and Reasoning ()
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