Litigation Release No. 25011 / January 19, 2021
Securities and Exchange Commission v. Jacob C. Glick, Civil Action No. 21-CV-00075-JJT, (D. Ariz. filed January 15, 2021)
The Securities and Exchange Commission announced charges against Jacob C. Glick of Scottsdale, Arizona, a former investment adviser representative associated with Advanced Practice Advisors, LLC (APA), for repeatedly defrauding and breaching his fiduciary duty to advisory clients.
The SEC’s complaint alleges that from mid-2016 through mid-2018, Glick defrauded his advisory clients in three different ways. First, Glick allegedly placed the majority of his clients, many of whom had moderate or conservative risk tolerances, in unsuitable and risky investments that resulted in substantial losses. In addition, Glick failed to disclose the risks involved in these investments to clients. As also alleged in the complaint, after APA told Glick to liquidate the risky investments, he instead bought more of the same investments in client accounts. Second, Glick allegedly defrauded two advisory clients by representing that he would use their money for a real estate investment. As alleged, Glick instead misappropriated the clients’ money and used it for his own options trading and to pay the clients purported interest payments on their investment. Third, after APA terminated Glick in June 2017, he allegedly misappropriated hundreds of thousands of dollars from an elderly widow who was a longtime advisory client. The complaint alleges that Glick told the client that he would invest all her money in real estate and instead, he misappropriated over $355,000 of her investment funds, including to pay his credit card bills. Glick also allegedly used a portion of her money to pay back other clients in Ponzi-like fashion.
The SEC’s complaint, filed in federal court in Arizona, charges Glick with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The complaint further charges Glick with aiding and abetting APA’s books and records violations under Section 204(a) of the Advisers Act and Rule 204-2(a)(7) thereunder. The SEC seeks permanent injunctions, disgorgement, and civil penalties against Glick.
The SEC’s investigation was conducted by Teri M. Melson and supervised by Victoria A. Levin of the SEC’s Los Angeles Regional Office. The litigation will be led by Michael Sew Hoy and supervised by Amy J. Longo. The SEC examination that led to the investigation was conducted by Emanuel Asmar and Yasin Shah and supervised by Christopher Martinez and Christine Connolly.