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