The SEC said in an administrative order Tuesday that Gordon R. Moore, a former registered representative at AXA Advisors, fraudulently induced investors, the majority of whom were current teachers in Colorado public schools, to roll over their investments from their Colorado Public Employees’ Association (PERA) 401(k) accounts into 403(b) products offered by AXA Advisors.
However, the investors were not eligible to make the
rollovers because they had not terminated their
PERA-eligible employment or reached the age of 59 and 1/2.
Moore worked in the Longmont, Colorado, office from 2001 to 2007. In 2008, Moore pled guilty to securities fraud, theft, and computer crime and was sentenced to two years probation and ordered to pay criminal restitution in an amount based on the commissions he earned from his fraudulent activities. The SEC settled with Moore, barring him from association with any broker, dealer, or investment adviser.
The SEC said AXA Advisors failed to reasonably supervise Moore, who completed more than 130 fraudulent rollovers. However, the SEC also said AXA Advisors promptly made significant improvements to its supervisory system, ultimately resulting in no monetary harm incurred by the participants.
AXA Advisors settled with the SEC without admitting or denying the findings.
– Ellie Behling
« EEOC Issues Guidance on Waivers for Departing Employees