Ohio Advisors Busted by SEC for Inflating Fees

The SEC charged two Ohio-based investment advisors with fees-related fraud. The two advisors, Robert Pinkas and Tab Keplinger, of Brantley Capital Management (which was also charged), with overstating the value of the investment portfolio so they could charge higher fees.
Two failing private companies unfortunately made up more than half of the investment portfolio of BCM, an investment company based in New York.
The investment period in question was from 2002 to 2005. Pinkas was CEO of both Brantley and BCM. Keplinger was the part-time CFO of both companies.
Pinkas has engaged an attorney to fight the charges, while Keplinger has settled the charges without admitting or denying the allegations. He consented to a fine with a five-year ban on serving as an officer or director of a public company.