SEC v. The Barr Financial Group, Inc.; and Alfred E. Barr, No. LR-16159, Middle District of Florida (May 24, 1999) — Press Release
raw: The Barr Financial Group, Inc. and Alfred E. Barr
The Barr Financial Group, Inc. and Alfred E. Barr, No. LR-16159 (May 24, 1999)
Alfred E. Barr and The Barr Financial Group, Inc. were permanently enjoined and fined $5,000 by a Florida federal court for willfully obstructing a 1998 SEC examination by refusing to disclose required client identities and books and records, violating Section 204 of the Investment Advisers Act.
The SEC obtained a permanent injunction and a $5,000 civil penalty against The Barr Financial Group, Inc. and its principal Alfred E. Barr for willfully refusing to comply with a 1998 SEC examination. Their conduct violated Section 204 of the Investment Advisers Act of 1940 and Rule 204-2, which require registered investment advisers to produce client information and books and records upon request. The U.S. District Court for the Middle District of Florida affirmed that the SEC’s examination authority is central to its regulatory mission and imposed the penalties to deter future obstruction.
The U.S. Securities and Exchange Commission (SEC) brought enforcement action against The Barr Financial Group, Inc. (BFG) and its principal, Alfred E. Barr, for willfully obstructing a 1998 SEC examination by refusing to disclose client identities and other legally required books and records. This conduct constituted a violation of Section 204 of the Investment Advisers Act of 1940 and Rule 204-2, which mandate cooperation with SEC regulatory examinations. On May 5, 1999, the U.S. District Court for the Middle District of Florida entered a final judgment permanently enjoining both BFG and Barr from future violations of these provisions. The court emphasized that the SEC’s authority to examine records is essential to fulfilling its congressionally mandated regulatory duties. Barr was personally assessed a civil money penalty of $5,000, while BFG was also subject to the injunction. No criminal charges were filed, but the ruling reinforced the legal obligation of investment advisers to fully cooperate with SEC oversight. The case underscored the consequences of obstructing regulatory scrutiny and affirmed the SEC’s power to enforce compliance through civil penalties and injunctions.
Extracted insights
- $5K $5,000 <$10K
- person Alfred E. Barr ×2
- company The Barr Financial Group, Inc. ×2
- person Elizabeth a. Kovachevich
- Elizabeth A. Kovachevich Entered Final Judgment The Barr Financial Group, Inc. and Alfred E. Barr
- The Barr Financial Group, Inc. Violated Section 204 Investment Advisers Act of 1940
- Alfred E. Barr Aided and Abetted The Barr Financial Group, Inc.
- Alfred E. Barr Refused to Reveal Information Regarding BFG's Clients
- The Court Imposed Civil Money Penalty $5,000 Against Alfred E. Barr
- The Court Enjoins BFG and Barr From Further Violations
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16159 \ May 24, 1999 COURT PERMANENTLY ENJOINS AND FINES INVESTMENT ADVISER THAT OBSTRUCTED SEC EXAMINATION SEC v. The Barr Financial Group, Inc. and Alfred E. Barr, No. 98-1806-CIV-T-17E (M.D. Fla.) (Kovachevich, J.) The Securities and Exchange Commission ("SEC") announced that on Wednesday, May 5, 1999, the Honorable Elizabeth A. Kovachevich of the United States District Court for the Middle District of Florida entered a final judgment of permanent injunction and other relief against The Barr Financial Group, Inc. ("BFG"), a Tampa investment adviser, and its principal Alfred E. Barr ("Barr"). The Court ruled that BFG, aided and abetted by Barr, violated Section 204 of the Investment Advisers Act of 1940 ("Advisers Act") by "willfully refusing to allow the SEC to examine BFG's books and records and to produce to the SEC copies of certain legally required documents." The SEC's action resulted from Barr's refusal, during a 1998 examination of BFG, to reveal to the SEC information regarding the identity of BFG's clients that it is required to disclose under the Advisers Act. In its decision, the Court recognized that the SEC's examination authority is "central to the SEC's execution of its congressionally-mandated regulatory duties." The final judgment enjoins BFG and Barr from further violations of Section 204 of the Advisers Act and Rule 204-2 thereunder. The Court also imposed a civil money penalty against Barr in the amount of $5,000. Home | Previous Page Modified:05/24/1999UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16159 \ May 24, 1999 COURT PERMANENTLY ENJOINS AND FINES INVESTMENT ADVISER THAT OBSTRUCTED SEC EXAMINATION SEC v. The Barr Financial Group, Inc. and Alfred E. Barr, No. 98-1806-CIV-T-17E (M.D. Fla.) (Kovachevich, J.) The Securities and Exchange Commission ("SEC") announced that on Wednesday, May 5, 1999, the Honorable Elizabeth A. Kovachevich of the United States District Court for the Middle District of Florida entered a final judgment of permanent injunction and other relief against The Barr Financial Group, Inc. ("BFG"), a Tampa investment adviser, and its principal Alfred E. Barr ("Barr"). The Court ruled that BFG, aided and abetted by Barr, violated Section 204 of the Investment Advisers Act of 1940 ("Advisers Act") by "willfully refusing to allow the SEC to examine BFG's books and records and to produce to the SEC copies of certain legally required documents." The SEC's action resulted from Barr's refusal, during a 1998 examination of BFG, to reveal to the SEC information regarding the identity of BFG's clients that it is required to disclose under the Advisers Act. In its decision, the Court recognized that the SEC's examination authority is "central to the SEC's execution of its congressionally-mandated regulatory duties." The final judgment enjoins BFG and Barr from further violations of Section 204 of the Advisers Act and Rule 204-2 thereunder. The Court also imposed a civil money penalty against Barr in the amount of $5,000. Home | Previous Page Modified:05/24/1999