{"id":18330,"date":"2019-09-30T09:34:49","date_gmt":"2019-09-30T14:34:49","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=18330"},"modified":"2019-10-11T09:35:01","modified_gmt":"2019-10-11T14:35:01","slug":"strong-investment-management-and-laurel-wealth-advisors-settle-cherry-picking-allegations","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/strong-investment-management-and-laurel-wealth-advisors-settle-cherry-picking-allegations\/","title":{"rendered":"Strong Investment Management and Laurel Wealth Advisors Settle Cherry Picking Allegations"},"content":{"rendered":"

A final judgment has been reached in the US Securities and Exchange Commission\u2019s (SEC)<\/a> fraud case against Strong Investment Management. The investment adviser, based in California, and its owner James Bronson are accused of running a cherry picking scam that harmed clients and went on for over four years. Now, they will pay $1.2M.<\/p>\n

Strong has more than six dozen clients and Bronson had sole discretion regarding how to allocate trades that the firm made. The SEC brought its complaint against both of them early last year, with Bronson accused of using the investment adviser\u2019s omnibus account to trade securities while delaying their allocations to different client accounts until he\u2019d seen how the trades had performed throughout the day. Bronson would then allegedly \u201ccherry pick\u201d the trades by giving himself a disproportionate amount of the profitable trades while a similar disproportionate number of unprofitable ones were sent to clients. As a result, Bronson \u201creaped substantial profits\u201d that he would not have otherwise.<\/p>\n

Bronson and Strong are also accused of misrepresenting their allocation and trading practices in their Form ADV, which falsely stated that no accounts had been given preference when trades were divvied up. Now, they are liable for nearly $961K of disgorgement and over $100K of prejudgment interest. They must pay a $184,767 civil penalty.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

A final judgment has been reached in the US Securities and Exchange Commission\u2019s (SEC) fraud case against Strong Investment Management. The investment adviser, based in California, and its owner James Bronson are accused of running a cherry picking scam that harmed clients and went on for over four years. Now, they will pay $1.2M. Strong […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3781,3795,3761],"tags":[2666,4192,4193,4191,2976],"class_list":["post-18330","post","type-post","status-publish","format-standard","hentry","category-investment-advisers","category-sec-settlements","category-securities-and-exchange-commis","tag-cherry-picking","tag-james-bronson","tag-joseph-buchanan","tag-laurel-wealth-advisors","tag-strong-investment-management"],"yoast_head":"\nStrong Investment Management and Laurel Wealth Advisors Settle Cherry Picking Allegations — Investor Lawyers Blog — September 30, 2019<\/title>\n<meta name=\"description\" content=\"A final judgment has been reached in the US Securities and Exchange Commission\u2019s (SEC) fraud case against Strong Investment Management. The investment — September 30, 2019\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/strong-investment-management-and-laurel-wealth-advisors-settle-cherry-picking-allegations\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Strong Investment Management and Laurel Wealth Advisors Settle Cherry Picking Allegations — Investor Lawyers Blog — September 30, 2019\" \/>\n<meta name=\"twitter:description\" content=\"A final judgment has been reached in the US Securities and Exchange Commission\u2019s (SEC) fraud case against Strong Investment Management. The investment — September 30, 2019\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Strong Investment Management and Laurel Wealth Advisors Settle Cherry Picking Allegations — Investor Lawyers Blog — September 30, 2019","description":"A final judgment has been reached in the US Securities and Exchange Commission\u2019s (SEC) fraud case against Strong Investment Management. 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