Litigation Release No. 21755 /November 23, 2010

U.S. Securities and Exchange Commission v. Crossroads Financial Planning, Inc., and Julie M. Jarvis, et al, Case No. 2:09-cv-269 (MRA) (SDOH)

SEC Secures Settlement with Ohio Man Who Received Funds Misappropriated from Elderly Clients of Crossroads Financial Planning, Inc.

The Securities and Exchange Commission announced today that John Simpson of Columbus, Ohio, has agreed to settle the Commission's pending civil action against him. The Commission's amended complaint, filed in the United States District Court for the Southern District of Ohio on October 21, 2009, named Simpson as a relief defendant and alleged that he received from Julie Jarvis funds and other assets purchased with misappropriated funds. Jarvis, the owner of Crossroads Financial Planning, Inc., formerly an investment advisory firm in Columbus, previously settled the SEC's allegations against her, admitting that she had misappropriated over $2.3 million from her investor clients.

Under today's announced settlement, Simpson admitted that, based on evidence of which he became aware after Jarvis was arrested, he had received benefits and other items of value from Jarvis that came from ill-gotten gains and for which he gave no consideration. Simpson consented to the entry of a judgment requiring him to disgorge $70,000 to the victims of Jarvis's fraud scheme. The judgment also requires Simpson to cooperate in tracing investor funds misappropriated by Jarvis. The proposed settlement is subject to approval by the U.S. District Court for the Southern District of Ohio.

In a related criminal matter, on October 14, 2009, the United States District Court for the Southern District of Ohio sentenced Jarvis to 66 months in prison and ordered her to pay restitution to her victims.

The Commission notes the assistance and cooperation from the United States Attorney's Office for the Southern District of Ohio and the Federal Bureau of Investigation.

For more information, see prior litigation release numbers LR-21352 and LR-20996.


Last modified: 11/24/2010