State issues securities complaint against Westboro wealth management firm


WESTBORO — 

A local wealth management company has been charged with making false statements about what assets it managed in its application for registration as an investment adviser and making false claims on its website, according to a complaint issued by Secretary of State William F. Galvin this week.

The administrative complaint has been lodged against CCR Wealth Management by the Securities Division of the secretary of state’s office. The complaint seeks to deny CCR Wealth Management registration as an investment adviser.

Meanwhile, CCR officials said in a statement today that the firm is working with securities officials to resolve the matter.

“CCR Wealth Management is a leading independent financial management and advisory firm. We take our reporting and registration requirements very seriously, and will work closely with the Massachusetts Securities Division to clarify any misunderstanding that may exist,” according to a statement released by the company. “We look forward to resolving this matter in a constructive way.”

CCR is among an estimated 3,200 investment adviser firms nationally whose managed assets ranged between $25 million and $100 million that a were “switched” from federal to state regulation under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, according to Mr. Galvin.

CCR has been registered with the U.S. Securities and Exchange Commission since Oct. 31, 2001. The company applied for registration in Massachusetts as an investment adviser June 20, 2012, triggering an extensive review of its prior federal filings, according to Mr. Galvin’s office.

“As these investment adviser firms come under Massachusetts regulation for the first time, the Securities Division will be thorough in checking their applications to make sure the information they supply regulators, and their prospective clients is factual,” Mr. Galvin said.

“This examination revealed an illogical and inconsistent pattern in reporting assets under management … that existed throughout CCR’s nearly 11-year period of registration with the SEC,” the complaint states. “CCR would report both its (Assets Under Management) and the number of accounts containing those assets as large, even denomination, static values over long durations and multiple amendments (to the SEC form).”

CCR told the Securities Division that it had included accounts managed as broker-dealer agents into its total assets under management number for its advisory accounts between 2007 and 2012.

CCR was not required to include those assets into its advisory accounts in federal filings.
However, by doing so, the Securities Division said, it gave the appearance that CCR was managing more assets than they were, and allowed them to circumvent state registration.

The complaint also alleges CCR’s website claimed it managed more than $650 million. CCR told the Securities Division that amount was stated because it “covers our business as a whole.” CCR, in reality, had very little business under RIA, or Registered Investment Advisers, according to the complaint.

“State registered investment advisers should view today’s filing as a harbinger of the risks associated with filing false information with the Division or including misleading statements on their website” Mr. Galvin stated.

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Thursday, September 27th, 2012 EN

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