Morales settles with SEC, agreeing not to associate with investment advisors and paying $130K fine
The U.S. Securities and Exchange Commission has settled its civil lawsuit against Walter Morales and his firm, Commonwealth Advisors, sparing the Baton Rouge investment advisor from having to go to trial against the government on charges of defrauding investors and from admitting any wrongdoing in the long-running case.
In return, however, Morales has agreed to be barred from associating with any investment adviser for at least five years and to pay a $130,000 fine.
Additionally, Commonwealth Advisors will have its license revoked by the SEC, though as a practical matter that will have very little effect. Morales closed Commonwealth Advisors in 2013 and transferred the retail, or individual investor, side of the business to an employee-owned firm, 3rd Street Capital Management, with which he is not involved.