- October 21, 2024
- BA Securities
- SEC Investigation
Evan Howard Katz (CRD#: 5848403) was a previously registered broker.
Broker’s History
He entered the securities industry in 2013 and previously worked with Alternative Asset Investment Management Securities, LLC; BA Securities, LLC; and Stonehaven, LLC.
Allegations of Misconduct
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2024, the Securities and Exchange Commission (“Commission”) deemed it appropriate and in the public interest that cease-and-desist proceedings be, and hereby are, instituted against Evan H. Katz (“Respondent”). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. The commission finds that This matter arises out of misrepresentations in the private placement memorandum (“PPM”) and marketing materials for the Crawford Ventures Absolute Return Fund, LP (the “Fund”), a currency trading fund that raised more than $16 million from investors. The Fund’s PPM and marketing materials claimed that the Fund’s currency trading strategy would mirror a successful strategy previously used by two of the Fund manager’s principals-brothers Akshay and Dev Kamboj (the “Kamboj brothers”)-in Separately Managed Accounts (“SMA”). As proof of the SMA results, prospective investors were provided with an “Audit Report” and a “Performance Audit” purportedly issued by an audit and consulting firm (“the Auditor”) based in Australia. In reality, the Auditor had not audited the SMAs and the Audit Report and the Performance Audit had been forged by the Kamboj brothers. Katz, a co-founder of the Fund, provided to certain prospective investors the forged materials that the Kamboj brothers furnished. While the Kamboj brothers hid their conduct from Katz, he failed to take reasonable steps to confirm the legitimacy of the Audit Report and the Performance Audit in violation of Sections 17(a)(2) and (3) of the Securities Act.
In addition, Evan H. Katz has been the subject of one other FINRA Disclosure:
- September 2024—Permitted to Resign from Stonehaven, LLC., “The registered representative failed to make disclosures, as required by Firm Policy, to the Firm regarding an SEC investigation that involved him during his association with the Firm, and therefore violated Firm policy and was permitted to resign accordingly.”
For a copy of Evan H. Katz’s FINRA BrokerCheck, click here.
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Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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