Brian J. Ourand, a former SFX Financial Advisory Management Enterprises Inc. executive, was found guilty Tuesday by a Securities and Exchange Commission administrative judge of misappropriating client funds.
Mr. Ourand was ordered to disgorge $671,367 plus prejudgment interest and pay a $300,000 civil penalty. He also is barred from the securities industry.
According to the SEC administrative complaint filed in June 2015, Mr. Ourand served as SFX president until August 2011. The complaint said he was terminated after a client complained and SFX conducted an internal investigation, leading to the SEC investigation. The SEC alleges that Mr. Ourand, who now lives in Miami, misappropriated client assets over a five-year period.
Efforts to reach Mr. Ourand for comment were unsuccessful.
Mr. Ourand invoked his Fifth Amendment right against self-incrimination when called to testify at the hearing. “In fact, he declined to offer any evidence at all, fearing a potential impact on the criminal case against him,” Carol Fox Foelak, the administrative judge, noted in the order.
SFX Financial Advisory is headquartered in Washington. In its most recent Form ADV filing in March 2014, SFX disclosed that it managed $15 million through advisory and financial management services, primarily to current and former professional athletes.
In June 2015, the SEC charged SFX and its chief compliance officer with failing to implement policies designed to prevent the misappropriation of client assets, failing to conduct annual reviews, and filing a misstatement in a Form ADV filing.
SFX paid $150,000 and Chief Compliance Officer Eugene Mason paid $25,000 to settle the case.