SEC v. Timothy J. Roth, et al, Case No. 11-cv-02079 (C.D. Ill.). On February 5, 2013, the SEC announced that a federal judge sentenced Timothy J. Roth to 151 months in prison and ordered him to pay $16,151,964 in restitution to his victims. Roth, a former investment adviser associated with Comprehensive Capital Management, Inc. (“Comprehensive”), pleaded guilty to one count of mail fraud and one count of money laundering in connection with his misappropriation of over $16 million worth of mutual funds. The criminal charges arose out of the same facts underlying an SEC action filed against Roth in March 2011. The SEC alleged that while Roth worked for Comprehensive, he stole more than $16 million worth of mutual fund shares from clients for whom he provided investment advice. Roth secretly caused his victims’ mutual fund shares to be transferred to an account under his control, even though no such transfer had been requested or authorized by the clients. After selling the clients’ shares, Roth sent the proceeds to accounts and companies he controlled. The SEC charged Roth with violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and with aiding and abetting violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-2 thereunder.
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