The allegations read: Sec ia release 4939, june 8, 2018: the securities and exchange commission (commission) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to section 203(f) of the investment advisers act of 1940 (advisers act) against larry werbel (werbel). On the basis of this order and werbel's offer, the commission finds that on september 15, 2017, werbel pled guilty to one count of conspiracy to commit securities fraud in violation of title 18, united states code, section 371 and one count of investment adviser fraud in violation of title 15, united states code, section 80b-6 before the united states district court for the southern district of new york, in united states v. Larry werbel, crim. No. 1:15-cr-171. In connection with that plea, werbel admitted, among other things, that: from at least 2010 through march 2015, he was a registered investment adviser with an office in cleveland, ohio; from at least 2011 through 2014 he introduced his clients to an investment opportunity; he willfully failed to tell these clients that he was being compensated to recommend the purchase of the securities; this compensation agreement was an agreement with a codefendant in the case; he also failed to inform these clients that the entity he directed his clients to send their money for the purchase of the securities, was run and controlled by the codefendant in the case, who werbel knew at the time as a convicted felon; he met with the codefendant in the case in connection with his compensation agreement to discuss his clients' investment opportunities in the securities; and when he engaged in this conduct he knew it was wrong.
