The Securities and Exchange Commission (SEC) entered a judgment against Anthony B. Liddle, who managed Prosper Wealth Management, LLC.
On February 28, 2024, the US District Court for the Western District of Wisconsin entered a final judgment against Liddle.
The SEC complaint, filed on January 24, 2023, alleged that Liddle, while acting as an investment adviser, fabricated documents and made misrepresentations to clients, many of whom were elderly. Liddle misunderstood that these clients’ portfolios had become too risky and needed to be replaced with less risky securities.
These “less risky” securities were often rated as high risk and were also unavailable. Liddle had advisory clients send money directly to his investment advisory firm, where Liddle misappropriated client funds and never invested the money on behalf of his clients.
Liddle also fabricated statements and made purported investment payments to advisory clients that actually came from defrauded client funds.
The final judgment, which was entered by consent, bars Liddle from future violations of the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. , and sections 206(1) and (2) of the Investment Advisers Act of 1940.
The ruling also prohibits Liddle from acting as an officer or director of any issuer that has a class of securities registered under Section 12 of the Exchange Act.
In addition, the judgment orders Liddle to pay restitution in the amount of $1,662,041.80, but deems that obligation fully satisfied by the entry of a restitution order in a parallel criminal case filed in the U.S. District Court for the Western District of Wisconsin, in which Liddle pleaded guilty to wire fraud and money laundering and was sentenced to 97 months in prison.
The Capital Market Commission’s appeal on this matter has now been completed.