SEC Revokes Registration of Lufkin Advisors for Fraudulent Cryptocurrency Activities

In a press release, the U.S. Securities and Exchange Commission (SEC) filed an administrative lawsuit against Lufkin Advisors LLC on Wednesday. Previously, Lufkin Advisors had proposed a settlement offer, which the SEC has accepted. The SEC found that Lufkin Advisors engaged in fraudulent activities, including poor management of crypto assets, undisclosed investments with employers associated with the spouse of the company’s head, and improper accounting practices. The company also failed to monitor the value of investments and comply with legal requirements, including asset custody, reporting accuracy, and advisor record maintenance. As a result, the SEC permanently prohibited Lufkin Advisors from future violations of multiple provisions of the Advisers Act and corresponding rules, and revoked its registration. Lufkin Advisors neither admitted nor denied the findings of the investigation, but agreed to the order, excluding the SEC’s jurisdiction and certain findings of the investigation