Michael Breton allegedly defrauded at least 30 clients out of around $1.3m (£1m, €1.2m) during a six-year period.
Breton and his firm, Strategic Capital Management, have agreed to a partial settlement subject to court approval. Monetary sanctions are to be determined at a later date.
Breton has also consented to an SEC order barring him from the securities industry.
In a parallel action, however, the US Attorney’s Office for the District of Massachusetts announced criminal charges against Breton on Wednesday.
Dump losing trades
“As alleged in our complaint, Breton assured clients that he would put their interests first but did just the opposite, taking the firm’s most profitable trades for himself and dumping the losing trades on his clients,” said Joseph Sansone, co-chief of the SEC Enforcement Division’s Market Abuse Unit.
“Our probing analytical work will continue to root out investment advisers who subject their clients to cherry-picking.”
