SEC Charges Former Investment Adviser for Failing to Adequately Disclose Conflicts of Interest, Overbilling, and Producing Backdated Compliance Documents - CCO Personal Liability
Quick SEC Enforcement Update
I wasn’t planning on posting again today, but this SEC enforcement action was too striking not to flag for Subscribers (and feel free to forward to others). There are lessons here for CCOs and this case is also ideal for training.
From July 11, 2025 press release:
“The Securities and Exchange Commission today announced settled charges against American Portfolios Advisors, Inc. (“APA”), formerly a registered investment adviser based in Holbrook, New York, for failing to adequately disclose conflicts of interest, overbilling its clients, and, through its former chief compliance officer, Colin Michael Moors (“Moors”), and its former president, Gary Bruce Gordon (“Gordon”), creating backdated documents and providing them to SEC staff during a compliance examination.”
And further:
“Moors created and backdated compliance documents for three calendar years that purported to memorialize contemporaneous annual compliance reviews required by APA’s policies and procedures. According to the order, the three documents were signed and backdated by both Moors and Gordon and were provided to SEC staff.”
Wow.
What Compliance Officers Should Take Away:
• Overbilling clients resulted in APA paying $1.75 million in penalties.
• Backdating documents meant to falsely demonstrate compliance led to personal sanctions.
• Former CCO Colin Moors was censured and hit with a $10,000 civil penalty.
See the CCO’s separate order here (Exchange Act Rel. No. 103437)
Lesson
When it comes to SEC exams and compliance records, accuracy and integrity are non-negotiable. This case is a stark reminder: if documentation doesn’t exist, you can't retroactively invent it.