The Securities and Exchange Commission on Thursday announced charges against Miami-based E*Hedge Securities,Inc. and its president, Devon W. Parks, for failing to provide required books and records during a commission examination and for improperly registering with the commission as an Internet investment adviser.
According to the SEC’s complaint, from mid-April 2020 to the present, E*Hedge and Parks, while operating COVID-19-related investment websites, have failed to produce books and records requested by SEC examination staff, as required by the Investment Advisers Act of 1940. The complaint alleges that this is the second time E*Hedge and Parks have failed to respond to an SEC examination attempt. The complaint further alleges that E*Hedge is improperly registered with the commission as an Internet investment adviser because it does not meet the applicable registration requirements, and does not otherwise appear to be qualified for registration with the commission.
The SEC’s complaint, filed in federal court in the Southern District of Florida, charges E*Hedge with violating the books and records provisions of Section 204(a) of the Advisers Act and the registration provisions of Section 203A of the Advisers Act, and Parks with aiding and abetting those violations. The SEC’s complaint seeks preliminary and permanent injunctive relief, an order to preserve and produce records, and civil penalties.
The SEC’s investigation was conducted by Michelle Bosworth under the supervision of Elisha L. Frank and Glenn S. Gordon. The litigation will be led by Alise Johnson under the supervision of Andrew O. Schiff. The examination that led to this enforcement action was conducted by Omar Santos, Ileana J. Rodriguez, Michael Devine, Jesse Alvarez, and John C. Mattimore of the SEC’s Office of Compliance Inspections and Examinations.