SEC Charge IA for $15mn Fraud

On Sep. 14, SEC charged IA on conflicts that defrauded customers.

  • Steele Financial and Tamara Steele sold $15mn in stock from a private company,
    Behavioral Recognition Systems (BRS), previously charged with fraud by the SEC.

Alleged Violations

  • Shares sold to 120 advisory clients, many of whom are current or former teachers.
  • Steele did not disclose that she and the firm would receive up to 18% from sales.
  • Lead to total commission of cash and warrants from BRS that were worth $2.5mn.
  • False invoices were created to conceal involvement with the sale of BRS securities.


  • SEC sought disgorgement of ill-gotten gains with interest, penalty and injunctions.