A Buford investment adviser has been ordered by a federal judge to pay more than $1.9 million to resolve claims he misappropriated client funds for personal use, according to the Securities and Exchange Commission.
Blake B. Richards was ordered this week to pay $1.83 million in disgorgement and prejudgment interest, plus an $80,000 civil penalty, according to a news release Thursday from the SEC. A court order states Richards consented to the judgment.
The securities regulator sued Richards in May 2013, accusing him of securities fraud. The SEC also said Richards provided false financial statements to clients, including two widows.
The bulk of the $1.7 million in misappropriated funds came from retirement accounts and/or life insurance proceeds held by at least seven investors, the regulator said.
Richards asked clients to write checks to entities he controlled and said he would invest in standard annuities, stocks or other common assets. But the investments he told clients he made were not carried out as he claimed, the SEC said.
An attorney for Richards did not immediately return messages seeking comment.
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