The Securities and Exchange Commission has obtained a final judgement against former Michigan-based investment adviser, Steven F. Muntin, who was charged with defrauding one of his clients out of more than $314,000.
A Michigan district court ordered Muntin to pay $360,000 in disgorgement plus prejudgment interest, and a civil penalty of nearly $259,000.
Muntin spent four years with registered investment adviser, Taylor & Morgan Asset Management. According to the SEC’s complaint, while working for the RIA, he also managed certain investments for his clients through his own company, Executive Asset Management Inc., which was previously registered as an investment adviser with the state of Michigan.
Between March 2016 and February 2020, Muntin allegedly solicited one of his elderly advisory clients to write checks totaling $305,750 to Executive Asset Management for purported investments in securities.
The SEC claims that Muntin did not invest the client’s money in securities, and instead paid his mortgage, real estate taxes, health insurance, boat and car loans, and credit card bills. The complaint further alleged that Muntin also overcharged the client at least $9,000 in management fees.
Without admitting or denying the SEC’s allegations, Muntin consented to the entry of a judgment that permanently enjoins him from violating the antifraud provisions of various federal securities laws.