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Red Oak Blog

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Saturday, May 18 2019

Cost of Fraud

On February 13, 2019 the Securities Commissioner of the State of Colorado entered a final order revoking the registration of Leyenda Capital Partners, LLC and permanently barring its managing member, Jeffrey Francis Thompson, from the securities industry. Jeffrey’s license is permanently relinquished and he shall never make recommendations or otherwise render advice to clients regarding securities and shall not manage securities accounts or portfolios for clients ever again.

From January 2016 to December 2018, Jeffrey Thompson was the managing member of Leyenda Capital Partners, LLC, d/b/a JFThompson Wealth Management. Although Thompson denies the allegations, the Staff of the Colorado Division of Securities conducted an examination of Thompson’s firm and found that he charged clients unauthorized, unearned, and unclear fees. In addition, he failed to disclose the services that were provided for each fee deduction and failed to disclose that he had previously declared bankruptcy. Thompson also directly took possession and custody of funds in which the clients had a beneficial interest when they deducted client fees and failed to provide notice to his clients.

Leyenda Capital Partners, LLC provided their clients with inaccurate fee invoices. When asked to produce advisory contracts to the Colorado Division of Securities, Thompson produced contracts with forged signatures to the Division. As a result of his actions, the Securities Commissioner of the State of Colorado alleged that Jeffrey Thompson and Leyenda Capital Partners, LLC engaged in forgery, theft, exploitation, non-disclosure, incomplete disclosure, and manipulative and deceptive practices. On May 9, 2019 the SEC, noting the findings of the Colorado Division of Securities, issues an order against Jeffrey Thompson barring him from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.

See the SEC Order here: CLICK HERE