El Capitan Advisors and It’s Principal Andrew Nash Accused of Misappropriating $4.6M

• July 12, 2025
• El Capitan Advisors

El Capitan Advisors (CRD#: 290340/SEC #: 801-121377) is a registered investment firm with the SEC.

Andrew Nash (CRD#: 6874764) was the principal of El Capitan Advisors, Inc., and was permanently barred by the SEC in June of 2025.

Allegations of Misconduct

According to publicly available records released by the U.S Securities and Exchange Commission (SEC), in June 2025, the SEC filed a complaint in the Central District of California alleging, “ in June 2021, Nash and El Capitan entered into an agreement with a public company advisory client to provide cash management services for tens of millions of dollars of the client’s money held at various financial institutions. In reality, according to the SEC’s complaint, in breach of his and El Capitan’s fiduciary duties as investment advisers, Nash transferred over $15 million out of the client’s accounts and spent a portion of that money to buy a $4.6 million home in Santa Barbara, California. The complaint further alleged that, to conceal his theft, Nash fabricated account statements purporting to show the client’s money still held at the financial institutions. Additionally, according to the complaint, Nash filed Form ADV reports with the SEC that materially overstated El Capitan’s assets under management.

Nash and El Capitan, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of final judgments permanently enjoining them from violating Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940 by committing or engaging in specified actions or activities relevant to those provisions. The final judgments also orders (i) Nash to disgorge ill-gotten gains of $4.6 million plus prejudgment interest of $791,153.48; (ii) El Capitan to disgorge ill-gotten gains of $10.7 million plus prejudgment interest of $1,840,291.82; and (iii) Nash to pay a civil penalty of $3,456,942.

For a copy of the SEC Litigation Release, click here.

For a copy of El Capitan’s SEC Advisor Info, click here.

We Help Investors Recover Investment Losses

FINRA Rule 2150 specifically addresses theft and conversion in a customer account, stating “no member or person associated with a member shall make improper use of a customer’s securities or funds.”  This rule includes any “guarantee” that brokers make to customers in relation to losses incurred in a brokerage account.

 

In addition, FINRA Rule 3240 strictly prohibits a financial advisor from borrowing money from a client absent from unique circumstances, such as a familial relationship between the Financial Advisor and the client.  There is also an exception if the client is a financial institution regularly engaged in the business of lending.  The reason for this prohibition is clear—borrowing money from clients creates an immediate conflict of interest and can potentially lead to theft or conversion of client assets.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.