Maryland-based financial advisor James Glover and Sherman Hill, the co-manager of investment vehicle Colonial Tidewater Realty Income Partners, have agreed to a settlement with the SEC relating to charges that they defrauded investors through the investment scheme, the SEC announced August 13, 2015.
As the SEC alleged in its Complaint: “This action involves a fraudulent offering scheme and investment advisory fraud principally conducted by James R. Glover (“Glover”). From approximately May 1998 to May 2012, Glover defrauded at least 125 investors out of approximately $13.5 million through the sale of unregistered securities of Colonial Tidewater Realty Income Partners, LLC (“Colonial Tidewater”) – an entity he controlled along with his longtime friend, co-defendant Sherman T. Hill (“Hill”). During this period, Glover used his position as a registered representative and investment adviser representative at Signator Investors, Inc. (“Signator”) to sell these fraudulent offerings to Signator’s customers and clients (the “Clients”).”
According the SEC Complaint, Hill managed Colonial Tidewater while Glover was responsible for rounding up new investors. Glover orchestrated the fraud by luring family, friends, and fellow church members to become his clients at Signator and then to invest in Colonial Tidewater, a private placement product. “Glover enticed investors through distribution of a private placement memorandum (“PPM”) and oral representations that falsely overstated the financial condition of Colonial, the liquidity of the investments, and the expected rates of returns. In doing so, Glover took advantage of the faith his Clients placed in him as their financial adviser and, for many, as their trusted friend they had known for years as fellow members of a local church,” the SEC Complaint stated.
As a condition of the SEC settlement, Glover is permanently barred from the industry. As part of the settlement, Glover and Hill neither deny or admit the SEC’s allegations, and also consented to the appointment of a receiver to take control of Colonial Tidewater.
Glover, Hill and Colonial Tidewater will pay the following as part of the Settlement:
- Glover: $839,128 in disgorgement, $64,977 in prejudgment interest, and a $450,000 penalty
- Hill: $75,000 penalty
- Colonial Tidewater: $527,844 in disgorgement, $66,542 in prejudgment interest, and a $725,000 penalty
Glover was a financial advisor with Signator Investors, Inc. from 1998 through May 2012, when he resigned amidst the allegations. In 2013, Glover entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with FINRA, agreeing to be barred from the industry.
Fishman Haygood attorneys recovered almost $1.6 million for California investors from Signator and investment advisor James Glover in a 2014 FINRA arbitration relating to investments in Colonial Tidewater. The FINRA award was detailed in news articles in the Wall Street Journal, Investment News, and the Baltimore Sun. In addition to the disciplinary actions taken against Signator and Glover, detailed above, Signator employee Gregory Mitchell also entered into a settlement with the SEC relating to allegations he failed to supervise two former financial advisors at th firm: Glover and Cory Williams.
Fishman Haygood represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.
Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood lawyer today.