Instead, Cashiering allowed disbursements without the required signatures, while Trade Support didn’t contact clients to verify they had initiated disbursement requests and, when they did carry out verification procedures, failed to obtain the required information from clients, the SEC alleged.

As a result, Hector May, the Rockland County, New York owner of an independent state-registered investment advisor whose clients participated in certain SAA advisory programs, was able to misappropriate about $8 million from the accounts of at least 15 SAA advisory clients, the SEC alleged.

In a Dec. 13, 2018 complaint, the SEC had alleged May and his daughter, Vania Bell, conducted a multimillion-dollar Ponzi scheme that defrauded local community members as well as members of their family and close friends.

In a parallel action filed Dec. 13, 2018, the U.S. Attorney’s Office for the Southern District of New York filed criminal charges against May, and he…

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