U.S. SEC Adviser Defraud Athlete

On 22 August, SEC charged IA with defrauding professional athlete.


  • Jeremy Drake defrauded his clients, a high profile professional athlete, and wife.
  • Drake, with HCR Wealth Advisors (LA), deceived the clients for over three years.

Alleged Violation

  • Deceived clients by telling them they were only paying special “VIP” annual rate.
  • Said they paid 0.15-0.20% of assets managed, when in fact they paid 1 percent.
  • Deception caused clients to pay $1.2mn more fees, than Drake had represented.
  • Drake personally received approximately $900k of incentive-based compensation.
  • Defendant sent misleading emails, deceptive fee reporting, fabricated document.
  • When asked for explanation on fees, Drake created false persona to corroborate.
  • Persona corroborated Drake’s story but on discovery, admitted he had been lying.
  • Drake warned wife that misconduct report could cause bad publicity for husband.


  • Permanent injunction, return of allegedly ill-gotten gains, interest, and penalties.