In the Matter of Jeremy A. Licht d/b/a JL Capital Management
Admin. Proc. File No. 3-08171
On September 12, 2017, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the "Order") against Jeremy A. Licht d/b/a JL Capital Management (the "Respondent"). In the Order, the Commission found that, from at least January 2011 through November 2015, the Respondent, a California registered investment adviser, engaged in a fraudulent trade allocation scheme, or "cherry-picking," that harmed his advisory clients. The Respondent allocated a disproportionate number of favorable trades (i.e., trades that had a positive first-day return) to his own account and allocated a disproportionate number of unfavorable trades (i.e., trades that had a negative first-day return) to clients' accounts. As a result of his scheme, the Respondent realized at least $88,504.00 in ill-gotten gains. The Commission ordered the Respondent to pay a total of $278,289.34 in disgorgement, prejudgment interest, and civil money penalty to the Commission, pursuant to a 12 month payment plan. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and interest, collected can be distributed to investors harmed by the Respondent's conduct. See the Commission's Order: Release No. 34-81584.
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