U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23170 / January 7, 2015
Securities and Exchange Commission v. Sherwin Brown and Jamerica Financial, Inc., Civil Action No. 1:14-cv-05057 (D. Minnesota, filed December 23, 2014)
On December 23, 2014, the Securities and Exchange Commission filed an action alleging that Sherwin Brown has been acting in violation of a June 17, 2011 SEC bar order. The complaint alleges that despite having been barred by the SEC from associating with an investment adviser, Brown has continued to do so by associating with his investment adviser company, Jamerica Financial, Inc. The complaint alleges that since the time of the bar order, Brown has continued to control Jamerica, to provide investment advice to its clients, and to receive, along with Jamerica, compensation from Jamerica's clients for that investment advice.
The SEC complaint alleges that by engaging in this conduct, Brown has violated the 2011 Order as well as Section 203(f) of the Investment Advisers Act of 1940 (the "Advisers Act"). The complaint also alleges that, by continuing to allow a barred individual to associate with the firm, Jamerica violated Section 203(f) of the Advisers Act. The SEC seeks injunctions against future violations, disgorgement of ill-gotten gains, and civil money penalties.
The SEC's investigation in this matter is continuing.