Press Release: SEC Charges Former NFL Player for Violations of Investment Adviser Regulations
Former NFL player Dwight Sean Jones and his firm Amaroq Asset Management were charged by the SEC with willfully violating the Investment Advisers Act by refusing to produce business records, falsely claiming they were destroyed in a fire or sold, despite maintaining a website promoting services until mid-2007 and claiming to manage $44 million in client assets.
The SEC charged Dwight Sean Jones and his firm, Amaroq Asset Management, with willfully violating the Investment Advisers Act of 1940 by refusing to allow SEC staff to examine required business records. Jones claimed to manage $44 million in assets—primarily from athletes—but asserted that all records had been destroyed in a fire or inadvertently sold by a storage company after repeated non-compliance. The SEC also alleged that although Jones claimed Amaroq ceased operations in 2004, the firm’s website remained active until mid-2007, falsely implying ongoing regulatory compliance and advisory services.
The SEC charged former NFL player Dwight Sean Jones and his investment advisory firm, Amaroq Asset Management, with willfully violating the Investment Advisers Act of 1940 by refusing to permit SEC staff to examine required business records. Jones claimed to manage over $44 million in client assets, primarily from athletes, but after repeated failures to respond to examination requests, he asserted that all records had been destroyed in a fire or sold by a storage company. Despite this claim, the SEC found that Amaroq’s website remained active until mid-2007, touting wealth management services and stating the firm was subject to periodic SEC examinations, contradicting Jones’s assertion that the business had ceased in 2004. The SEC alleged that Jones willfully aided and abetted Amaroq’s violations of examination and reporting requirements, demonstrating a pattern of deception to evade regulatory oversight. Although Jones resided in Missouri City, Texas, Amaroq purportedly maintained a Beverly Hills, California address, further complicating transparency. No monetary penalties were specified in the release, but an administrative hearing was scheduled to determine appropriate remedial actions. The case underscores the SEC’s enforcement priority on compliance with examination authority, even when no direct financial fraud is alleged.
Exhibits & Attached Documents (2)
Extracted insights
- $44.00M $44 million $10M–$100M
- $40.00M $40 million $10M–$100M
- person advisory business records
- company all records destroyed in fire or sold by storage company
- person amaroq asset management
- agency documents for review by sec staff
- person dwight sean jones
- agency Securities and Exchange Commission
- SEC charged Dwight Sean Jones with failing to allow examination of business records
- Dwight Sean Jones claimed to manage $40 million in assets for clients
- Dwight Sean Jones refused to produce advisory business records
- Dwight Sean Jones claimed all records destroyed in fire or sold by storage company
- Dwight Sean Jones and Amaroq Asset Management failed to make available documents for review by SEC staff
- Amaroq Asset Management maintained website until mid-2007 touting wealth management programs
- Dwight Sean Jones resides in Missouri City, Texas
- Amaroq Asset Management maintains address in Beverly Hills, California
- Dwight Sean Jones told Commission staff $44 million advisory business no longer possessed any records
- Amaroq Asset Management willfully violated examination and reporting requirements of Investment Advisers Act of 1940
- Dwight Sean Jones willfully aided and abetted Amaroq's violations
- SEC instituted proceedings on September 24, 2007
SEC Charges Former NFL Player for Violations of Investment Adviser Regulations FOR IMMEDIATE RELEASE 2007-196 Washington, D.C., Sept. 24, 2007 - The Securities and Exchange Commission today charged investment adviser and former NFL player Dwight Sean Jones with failing to allow the Commission staff to examine his business records, as required by the federal securities laws. In the administrative proceeding instituted today, the Commission's Division of Enforcement alleges that Jones — who at one point claimed to manage more than $40 million in assets for his clients (primarily athletes) — refused to produce or allow the inspection of his advisory business records. After repeatedly failing to respond to the Commission staff, the Division alleges, Jones ultimately claimed that all his records had either been destroyed in a fire or inadvertently sold by a storage company. "The Commission's examination function is critical to fulfilling its investor-protection mandate, and today's action confirms that investment advisers must comply with Commission examinations," said Helane L. Morrison, Regional Director of the SEC's San Francisco Regional Office. In the Order Instituting Proceedings, the Division of Enforcement alleges that Jones and his firm, Amaroq Asset Management, failed to make documents available for review by the Commission's staff as required by law. The Order also alleges that although Jones claims that Amaroq discontinued business in 2004, Amaroq continued to maintain a website until mid-2007 touting its wealth management programs and that it was "subject to periodic SEC examinations." However, the Order alleges that Jones (a resident of Missouri City, Texas, although Amaroq purports to maintain a Beverly Hills, Calif. address) failed to permit the examination of Amaroq's records and later told the Commission staff that the $44 million advisory business no longer possessed any records whatsoever. The SEC's Division of Enforcement alleges that Amaroq willfully violated the examination and reporting requirements of the Investment Advisers Act of 1940 and rules thereunder, and that Jones willfully aided and abetted and caused Amaroq's violations. An administrative hearing will be scheduled to determine whether remedial actions are appropriate. # # # For more information, contact: Helane L. Morrison Regional Director SEC's San Francisco Regional Office (415) 705-2450 Marc J. Fagel Associate Regional Director SEC's San Francisco Regional Office (415) 705-2449 Additional materials: Administrative Proceeding No. IA-2651 and Order http://www.sec.gov/news/press/2007/2007-196.htm Home | Previous Page Modified: 09/24/2007
SEC Charges Former NFL Player for Violations of Investment Adviser Regulations FOR IMMEDIATE RELEASE 2007-196 Washington, D.C., Sept. 24, 2007 - The Securities and Exchange Commission today charged investment adviser and former NFL player Dwight Sean Jones with failing to allow the Commission staff to examine his business records, as required by the federal securities laws. In the administrative proceeding instituted today, the Commission's Division of Enforcement alleges that Jones — who at one point claimed to manage more than $40 million in assets for his clients (primarily athletes) — refused to produce or allow the inspection of his advisory business records. After repeatedly failing to respond to the Commission staff, the Division alleges, Jones ultimately claimed that all his records had either been destroyed in a fire or inadvertently sold by a storage company. "The Commission's examination function is critical to fulfilling its investor-protection mandate, and today's action confirms that investment advisers must comply with Commission examinations," said Helane L. Morrison, Regional Director of the SEC's San Francisco Regional Office. In the Order Instituting Proceedings, the Division of Enforcement alleges that Jones and his firm, Amaroq Asset Management, failed to make documents available for review by the Commission's staff as required by law. The Order also alleges that although Jones claims that Amaroq discontinued business in 2004, Amaroq continued to maintain a website until mid-2007 touting its wealth management programs and that it was "subject to periodic SEC examinations." However, the Order alleges that Jones (a resident of Missouri City, Texas, although Amaroq purports to maintain a Beverly Hills, Calif. address) failed to permit the examination of Amaroq's records and later told the Commission staff that the $44 million advisory business no longer possessed any records whatsoever. The SEC's Division of Enforcement alleges that Amaroq willfully violated the examination and reporting requirements of the Investment Advisers Act of 1940 and rules thereunder, and that Jones willfully aided and abetted and caused Amaroq's violations. An administrative hearing will be scheduled to determine whether remedial actions are appropriate. # # # For more information, contact: Helane L. Morrison Regional Director SEC's San Francisco Regional Office (415) 705-2450 Marc J. Fagel Associate Regional Director SEC's San Francisco Regional Office (415) 705-2449 Additional materials: Administrative Proceeding No. IA-2651 and Order http://www.sec.gov/news/press/2007/2007-196.htm Home | Previous Page Modified: 09/24/2007