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.
- 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.