In re Amaroq Asset Management
The SEC accused former NFL player Dwight Andree Sean Oneal Jones and his firm Amaroq Asset Management of willfully violating recordkeeping and examination rules by refusing to produce business records—claiming they were destroyed in a fire or sold—and maintaining a deceptive website until mid-2007 despite having ceased operations in 2004.
The U.S. SEC charged Amaroq Asset Management, LLC, and its sole principal, former NFL player Dwight Andree Sean Oneal Jones, with willfully violating Section 204 of the Investment Advisers Act and Rules 204-1 and 204-2(f) by refusing to produce or permit inspection of required books and records. Jones falsely claimed the records were destroyed in a fire or inadvertently sold by a storage company after repeatedly ignoring SEC requests, even though Amaroq’s website remained active until mid-2007, falsely stating it was subject to periodic SEC examinations. The SEC alleged Jones, who once claimed to manage over $40 million in client assets—primarily athletes—engaged in deceptive conduct to evade regulatory oversight, and sought cease-and-desist orders and potential civil penalties.
The U.S. Securities and Exchange Commission (SEC) initiated administrative proceedings against Amaroq Asset Management, LLC, and its sole principal, former NFL player Dwight Andree Sean Oneal Jones, for willfully violating Section 204 of the Investment Advisers Act of 1940 and related rules on recordkeeping and examinations. Jones, who previously claimed to manage over $40 million in assets primarily from athletes, refused to produce or allow inspection of the firm’s business records, asserting they had been destroyed in a fire or sold by a storage company after repeated failures to respond to SEC requests. Despite Jones’s claim that Amaroq ceased operations in 2004, the firm’s website remained active until mid-2007, falsely promoting its wealth management services and asserting it was subject to periodic SEC examinations. The SEC alleged this conduct constituted a deliberate effort to obstruct regulatory oversight and mislead clients and regulators alike. The agency charged that Jones willfully aided and abetted Amaroq’s violations, and that both entities engaged in deceptive practices in violation of federal securities laws. An administrative hearing was scheduled to determine the truth of the allegations and to decide whether to issue cease-and-desist orders, impose civil penalties, or take other remedial actions. The SEC required an initial decision from an Administrative Law Judge within 300 days of service of the Order, underscoring the seriousness of the alleged violations and the need for accountability in investment advisory practices.
Extracted insights
- $40.00M $40 million $10M–$100M
- person his advisory business records
- company in a fire or inadvertently sold by a storage company
- agency the united states securities and exchange commission
- The United States Securities and Exchange Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings
- Jones refused to produce or allow the inspection his advisory business records
- Jones claimed that all his records had been destroyed in a fire or inadvertently sold by a storage company
- Amaroq continued to maintain a website touting its wealth management programs
- Amaroq willfully violated the examination and reporting requirements of Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder
- Jones willfully aided and abetted and caused Amaroq’s violations
- An administrative hearing will be scheduled to determine whether the allegations in the Order are true
- The proceedings will determine whether Amaroq and Jones should be ordered to cease and desist from committing or causing violations
- The Order requires that an Administrative Law Judge issue an initial decision no later than 300 days from the date of service of the Order
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. INVESTMENT ADVISERS ACT OF 1940 Release No. 2651 / September 24, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12822 In the Matter of Amaroq Asset Management, LLC and Dwight Andree Sean Oneal Jones The United States Securities and Exchange Commission (Commission) today issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 (Order) against Amaroq Asset Management, LLC (Amaroq), a registered investment adviser, and its sole principal, former NFL player Dwight Andree Sean Oneal Jones (Jones), 44, of Missouri City, Texas. The Division of Enforcement alleges in the Order that Jones – who at one point claimed to manage over $40 million in assets for his clients (primarily athletes) – refused to produce or allow the inspection of his advisory business records, as required under the Investment Advisers Act (Advisers Act). After repeatedly failing to respond to the Commission staff, the Order alleges, Jones ultimately claimed that all his records had either been destroyed in a fire or inadvertently sold by a storage company. 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.” The Division of Enforcement alleges in the Order that through its conduct, Amaroq willfully violated the examination and reporting requirements of Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder, and that Jones willfully aided and abetted and caused Amaroq’s violations. An administrative hearing will be scheduled to determine whether the allegations in the Order are true, and to afford Amaroq and Jones an opportunity to establish any defenses to the allegations. The proceedings will also determine whether Amaroq and Jones should be ordered to cease and desist from committing or causing violations of and any future violations of Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder, and to determine whether remedial action, including but not limited to, civil penalties, are appropriate and in the public interest. The Order requires that an Administrative Law Judge issue an initial decision no later than 300 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice.
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. INVESTMENT ADVISERS ACT OF 1940 Release No. 2651 / September 24, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12822 In the Matter of Amaroq Asset Management, LLC and Dwight Andree Sean Oneal Jones The United States Securities and Exchange Commission (Commission) today issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 (Order) against Amaroq Asset Management, LLC (Amaroq), a registered investment adviser, and its sole principal, former NFL player Dwight Andree Sean Oneal Jones (Jones), 44, of Missouri City, Texas. The Division of Enforcement alleges in the Order that Jones – who at one point claimed to manage over $40 million in assets for his clients (primarily athletes) – refused to produce or allow the inspection of his advisory business records, as required under the Investment Advisers Act (Advisers Act). After repeatedly failing to respond to the Commission staff, the Order alleges, Jones ultimately claimed that all his records had either been destroyed in a fire or inadvertently sold by a storage company. 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.” The Division of Enforcement alleges in the Order that through its conduct, Amaroq willfully violated the examination and reporting requirements of Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder, and that Jones willfully aided and abetted and caused Amaroq’s violations. An administrative hearing will be scheduled to determine whether the allegations in the Order are true, and to afford Amaroq and Jones an opportunity to establish any defenses to the allegations. The proceedings will also determine whether Amaroq and Jones should be ordered to cease and desist from committing or causing violations of and any future violations of Section 204 of the Advisers Act and Rules 204-1 and 204-2(f) thereunder, and to determine whether remedial action, including but not limited to, civil penalties, are appropriate and in the public interest. The Order requires that an Administrative Law Judge issue an initial decision no later than 300 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice.