The allegations read: Sec admin release 34-80221, ia release 40-4664, investment company act of 1940 release 32531 / march 13, 2017:
the securities and exchange commission ("commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to sections 15(b) and 21c of the securities exchange act of 1934 ("exchange act"), sections 203(f) and 203(k) of the investment advisers act of 1940 ("advisers act"), and section 9(b) of the investment company act of 1940 ("investment company act") against aaron r. Parthemer ("parthemer" or "respondent").
the commission finds that beginning in 2009 and continuing into 2012, aaron parthemer participated in selling more than $5 million of unregistered, illiquid securities to certain of his professional athlete brokerage customers and investment advisory clients in an internet branding company known as global village concerns, inc. ("gvc"). Parthemer was issued gvc stock options and warrants provided by gvc. Parthemer's conduct with respect to the sale of gvc securities occurred outside and independent of his employment with registered broker-dealers. Parthemer misrepresented and omitted material information about the gvc investments to his investment advisory clients, some of which was based on information provided to parthemer by gvc. Parthemer presented this information to his advisory clients without conducting any due diligence to verify any of the information he provided to his advisory clients. Parthemer also used his personal communication devices and emails to communicate with his brokerage customers and others about firm business without causing copies of those communications to be sent to or preserved on the broker-dealers' respective email servers or preserved in paper form.
