Signator, Gregory Mitchell Agree to Settlements with SEC Relating to Failure to Supervise

By August 13, 2015 September 20th, 2017 News

Signator Investors, Inc. and supervisor Gregory Mitchell have agreed to a settlement with the SEC relating to allegations that they failed to adequately supervise two former financial advisors at the firm: James Glover and Cory Williams.

According to an SEC order instituting the settled administrative proceeding in the case, Signator and Mitchell failed to identify and prevent the alleged fraud conducted by Glover and Williams. As the SEC Order stated: “These proceedings arise out of Respondents’ failure reasonably to supervise James R. Glover (“Glover”) and Cory D. Williams (“Williams”), former registered representatives and investment adviser representatives (collectively referred to as “financial representatives”) at Signator, with a view to preventing and detecting Glover’s and Williams’ violations of the federal securities laws. While associated with Signator, from approximately May 1998 through May 2012, Glover conducted an offering fraud that defrauded at least 125 Signator advisory clients and brokerage customers (collectively, “Clients”) of approximately $13.5 million by soliciting them to invest in Colonial Tidewater Realty Income Partners, LLC (“Colonial Tidewater”), a security not approved for sale by Signator representatives. Glover made materially false and misleading statements regarding the financial health of Colonial Tidewater, the expected returns and risk of investing, and deceived investors by, among other things, creating the false impression that Colonial Tidewater was a Signator-approved investment.”

As a condition of the settlement, Signator and Mitchell agreed to pay penalties of $450,000 and $15,000 respectively, without admitting or denying the SEC’s allegations. In addition, Signator agreed to be censured, and Mitchell is suspended from acting in a supervisory capacity for one year.

Fishman Haygood attorneys recovered almost $1.6 million for California investors from Signator and investment advisor James Glover in a 2014 FINRA arbitration. Glover had placed the investors in Colonial Tidewater. The FINRA award was detailed in news articles in the Wall Street Journal, Investment News, and the Baltimore Sun. Glover has been permanently barred by FINRA from the securities industry, and Glover also reached a settlement with the SEC relating to the Colonial Tidewater investment scheme.

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.

5 STEPS YOU SHOULD TAKE TODAY IF YOU'RE THE VICTIM OF INVESTMENT FRAUD