SEC v. Choice Advisors, LLC and Matthias O’Meara

Choice Advisors, LLC and Matthias O’Meara allegedly violated their fiduciary obligations and engaged in unregistered municipal advisory activities, among other violations. According to the SEC, Choice and O'Meara entered into an impermissible fee-splitting arrangement with an underwriter to bond offerings in which their municipal advisory clients were borrowers. The SEC further alleged that O'Meara improperly worked on different sides of the same transaction, simultaneously serving as both a municipal advisor as well as a registered representative to the underwriter. Choice's and O'Meara's municipal advisory activities were unlawful because they were not registered with the SEC or the Municipal Securities Rulemaking Board (MSRB). Moreover, the complaint alleged that the defendants breach their fiduciary obligations by failing to disclose the conflicts of interest created by their unregistered status and by O'Meara's dual role.

Summary generated from official Securities and Exchange Commission press release