Failing To Provide Records To SEC Examiners Can Lead To Severe Charges

While examining a mutual fund which Peak Wealth Opportunities LLC advised, SEC examiners requested David W. Dube and Peak Wealth produce certain records to the SEC. Mr. Dube  owns Peak Capital and its subsidiary businesses. Mr. Dube serves as the president and sole managing member of Peak Wealth in addition to being the acting Chief Compliance Officer.

Bruce Karpati, Chief of the Enforcement Division’s Asset Management Unit, said in a statement that “After promising multiple times to provide requested records, Dube failed to live up to his regulatory obligations and turn over the records.” Their refusal “forced the agency to expend greater resources to pursue investigations.”

The SEC Order added allegations that Dube and Peak Wealth:

  • Failed to make and keep certain required financial records in accordance with Section 204 of the Advisers Act;
  • Failed to withdraw Peak Wealth’s registration with the SEC and make other required filings; and
  • Failed to provide the fund’s board of directors with information reasonably necessary to assess Peak Wealth’s advisory fees in violation of Section 15(c) of the Investment Company Act .

Section 204 of the Advisers Act requires investment advisers to make and keep certain records, furnish copies and disseminate reports to the Commission, upon request and as appropriate in the public interest or for the protection of investors.

Due to those alleged violations, the SEC could seek to permanently bar Dube from association with an SEC registered investment adviser or broker dealer.  Moreover, Dube was charged with aiding and abetting and causing Peak Wealth’s violations. Consequently, advisers should maintain adequate records and ensure all regulatory requests are complied with.

For additional guidance on this and other regulatory questions, please contact Andrew Deddeh at (619) 278-0020 or andrew.deddeh@corecls.com.