With /ES, I don't have to worry about earnings, dividends, assignment, etc. Karen taught me that. She's the bomb digity.
Not unless it’s her own money. Both her individual registration and Hope Advisers, LLC registration were withdrawn by the NFA on 10/31/2018. https://www.nfa.futures.org/BasicNet/Details.aspx?entityid=9VPANMdQyO8= https://www.nfa.futures.org/basicnet/Details.aspx?entityid=OZciTXLWmdw=&rn=Y CFTC Regulation 4.13(a)(2) specifies that if she manages a pool with greater than 15 clients or manages gross capital contributions received from all investors greater than $400,000 she has to register with NFA. Karen Bruton WAS indicted for fraud by SEC, and there’s a very good reason why her NFA/CFTC Registrations were withdrawn a week after she paid a $1.5M settlement.
Ouch, nice find! But the newspaper article linked earlier did mention that she was suspended temporarily, although it didn't mention the length of the suspension. I am guessing 6-12 months... Now the question is, what happens with the fund's money during the suspension? Are the investors looking for another fund (Hey Bobby, here is your opportunity!) or are they patient enough and trusting in Karen to wait? "The commission temporarily suspended Bruton and Roberts from doing business as accountants or investment advisers. " https://eu.tennessean.com/story/new...d-nonprofit-fined-1-5-m-sec-fraud/1436312002/
There’s a bit of a misconception here that just because Karen Bruton paid a $1.5M fine that it’s the same as getting a speeding ticket dropped in exchange for attending driving school. She consented, she agreed to, a federal judgement against her. Nowhere in that agreement does she deny wrongdoing. It’s a better outcome than a trial judge’s verdict but let there be no doubt - that judgement, disgorgement, and civil penalty follows her everywhere. At present Karen Bruton is not allowed to register as a Certified Public Accountant. She is banned from regerstering until an SEC public hearing can be held. https://www.sec.gov/litigation/opinions/2018/34-84627.pdf “On September 13, 2018, Bruton consented to entry by the district court of a final judgment against her. The judgment ordered Bruton to pay disgorgement and civil monetary penalties. It also permanently enjoined her from future violations of Advisers Act Sections 206(1), (2) and (4) and Rule 206(4)-8 thereunder.”
1. The SEC maintains that the Karen Bruton/Hope Advisers LLC Fund LOST $50M. It’s in their 2016 federal filings. 2. The term “temporary suspension” is used by the SEC until a public hearing can be held. At that point, the SEC can make a suspension permanent, reinstate the person, or impose a dated suspension ( X years ). 3. Even if Karen’s SEC suspension proves to be temporary - there is no obligation for the NFA/CFTC or a State Licensing Commission to approve her. In fact, the NFA or a State Licensing Commission can decline a registration on the general grounds of ethics violations and what they deem to be professional misconduct. She agreed to a federal judgement against her - and that shadow will follow her everywhere.
Thanks for the explanation Bone, so it is possibly the end of the road for her? Sweet retirement? Funds lose money all the time. It was not the loss but the cover up what got her into trouble...
According to 2016 SEC filings she LOST $50M of clients money. The 2018 consent judgement which Karen Bruton agreed to does not dispute that or offer a reconciled accounting. In fact, Karen agrees to a disgorgement and a civil penalty. In that judgement Karen Bruton does not deny guilt or refute the government’s charges.
You’re asking me to guess. Her retirement situation is not “sweet” if I had to guess. She went to great lengths to compel the SEC to reinstate her CPA eligibility. (Which she lost). That tells me that at 69 years old she needs to be preparing tax returns and small business books in order to make ends meet. The disgorgement figure was a very odd number - which leads me to guess that the Feds were looking for more but agreed to what she could produce. That also lends credence to the Fed’s allegation that she made money on management fees, and she never made any money on performance fees (profits) to speak of. She will NEVER get registered to handle OPM with the NFA. The NFA is very strict about ethics and professional conduct with client money. If she’s honest with a State Professional Licensing Board I have grave doubts that they would grant her an accounting license. I’m just guessing - I wish her no ill will, but there is no rational objective dispute that she was unethical at the very least and likely fraudulent.