SEC Bars Illinois Adviser

According to published reports, Roth was said to have taken more than $6 million between October 2010 and February 2011 in mutual fund shares from deferred compensation plans of companies that were clients of Comprehensive Capital Management (CCM).

In March 2011, the SEC filed an emergency action against Roth. His assets and those of several companies he controlled were frozen at the same time, and the assets were put into receivership. According to the SEC, Roth’s theft of client assets was later determined to have been more than $16 million.

The SEC alleged that Roth, who worked out of CCM’s office near Urbana, Illinois, secretly caused his victims’ mutual fund shares to be transferred to an account under his control, even though no such transfer had been requested or authorized by the clients. Then, according to a statement by the SEC, after selling the clients’ shares, Roth funneled the cash proceeds to various accounts and companies under his control or for his benefit, and to fund his own securities trading, without telling clients about the transfers..

Roth was charged with Securities Act violations and in February 2013, after entering a guilty plea, was sentenced to 12 years and seven months in prison by the U.S. District Court for the Central District of Illinois. He was ordered to pay $16,151,964 in restitution to his victims. Roth’s sentence will be followed by a supervised release of three years.

The SEC barred Roth on Monday from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent or nationally recognized statistical rating organization. He is also barred from participating in any offering of a penny stock, including acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer in order to issue or trade in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.