The U.S. Securities and Exchange Commission (SEC) has taken administrative action against Lufkin Advisors LLC, following the firm’s offer of settlement, which the SEC has accepted. The SEC’s investigation revealed Lufkin Advisors was involved in fraudulent activities, such as mishandling crypto assets making undisclosed investments with an employer associated with the spouse of the firm’s principal, and in improper accounting practices. Additionally, the firm failed to properly monitor investment values and comply statutory requirements related to custody of assets, accurate reporting, and maintenance of adviser records.
As result of these findings, the SEC has permanently barred Lufkin Advisors from violating multiple sections of the Advisers Act and corresponding rules., their registration has been revoked. While not admitting or denying most findings except for certain jurisdictional issues identified by the SEC, Lufkin Advisors have consented to this order.
