Another CCO Liability Case and the SEC Complains about “May” Instead of “Will”

The SEC’s complaint against Temenos Advisory, Inc. and George L. Taylor paints a very bad picture for the firm and its Chief Compliance Officer. In this case, the CCO is also the CEO, founder and majority owner of Temenos. A few years ago, the SEC had expressed an unwillingness to prosecute CCOs, except in three extreme circumstances: Participating in the wrongdoing Hindering the SEC examination or investigation Wholesale failure The Temenos case falls clearly in category 1. The CCO participated in the alleged wrongdoing. I’m not going to lose any sleep over this case. And the picture painted by the SEC is one of blatant wrongdoing. Taylor concealed from clients that he and the firm were pocketing high commissions from the sales of the investment recommendations. Taylor is also accused of misleading clients about the risks and prospects of the investments. To top things off, the SEC alleges that Temenos grossly overbilled some of their advisory clients using an…

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