By Suzanne Barlyn
Nov 20 (Reuters) - An investment adviser who federal
regulators said misrepresented the amount of assets his firm
managed in order to remain registered with federal, instead, of
state, securities regulators, has been barred from the industry,
the Securities and Exchange Commission announced Tuesday.
Evens Barthelemy, founder of Barthelemy Group LLC,
misrepresented his firm's assets under management by 10 times
the actual amount - $26.28 million instead of the actual $2.628
million, according to the SEC.
Advisers who manage less than $25 million, such as
Barthelemy, have long been required to register with state
regulators.
Barthelemy and New York-based Barthelemy Group did not
return calls requesting comment. He did not admit nor deny the
SEC's findings, according to a settlement agreement with the
agency. Barthelemy may reapply for admission to the industry in
two years.
Some advisers prefer to be SEC registered because of the
cache is can have with clients, said Nancy Lininger, head of The
Consortium, a compliance consultancy in Camarillo, California.
They can say they are "with the big guys and have lots of money
under management," Lininger said.
The SEC learned of Evens Barthelemy's alleged
misrepresentation while examining the firm in 2010, according to
the settlement. Barthelemy, who was also the firm's managing
director and compliance officer, represented on regulatory forms
that the firm managed more than $26.5 million and between 70 and
90 accounts.
But SEC examiners learned from the firm's independent
custodian, which held client funds, that the assets totaled only
$2.6 million.
Follow us on Twitter @ReutersLegal | Like us on Facebook