2018-12-20 sec-litreleases litigation_release 66 KB 2,254 chars

SEC v. Walter F. Grenda, Jr.; Grenda Group, LLC; and Gregory M. Grenda, No. LR-24377, Western District of New York (Dec. 20, 2018) — Press Release

raw: Grenda Group, LLC, et al.

Grenda Group, LLC, et al., No. LR-24377 (Dec. 20, 2018)

Caption
SEC v. Walter F. Grenda, Jr, et al.
summary

Walter F. Grenda, Jr., a previously barred investment adviser, was charged with violating a 2015 SEC order by continuing to associate with Grenda Group, LLC, and was ordered to pay a $25,000 civil penalty and permanently barred from association with an investment adviser.

paragraph

Walter F. Grenda, Jr. was accused of violating a 2015 SEC order by continuing to associate with Grenda Group, LLC, an entity he formed with his son. The alleged fraud involved Grenda making discretionary changes to clients' investment accounts and impersonating his son on calls to the firm's broker-dealer. Grenda agreed to pay a $25,000 civil penalty and was permanently enjoined from violating the Investment Advisers Act.

narrative

Walter F. Grenda, Jr., a previously barred investment adviser, was charged with violating a 2015 SEC order by continuing to associate with Grenda Group, LLC, an entity he formed with his son to replace his prior advisory business. The alleged fraud involved Grenda meeting with clients, making discretionary changes to clients' investment accounts, and impersonating his son on calls to the firm's broker-dealer, leading to the termination of the firm's brokerage relationship. Without admitting or denying the allegations, Grenda consented to a permanent injunction against violating antifraud provisions and the associational bar of the Advisers Act, and was ordered to pay a $25,000 civil penalty. Additionally, the SEC issued a new order permanently barring him from association with any investment adviser, with no right to reapply. The SEC's litigation against Grenda Group and his son Gregory remains ongoing for permitting his involvement and making deceptive statements to clients. Grenda's actions were in direct violation of the 2015 Commission order, which barred him from association with an investment adviser with the right to reapply after three years.

Enriched metadata

Scheme
investment-adviser-fraud (100%)
Court
Western District of New York
Outcome
settled · 2018-12-07
Civil penalty
$25,000
Entity
Grenda Group, LLC
Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Statutes
15 U.S.C. § 80b-6
Parties
Securities and Exchange CommissionWalter F. Grenda, Jr.Grenda Group, LLCGregory M. Grenda
Keywords
grendagrenda groupwalter grendawaltergroupinvestmentbarring associationassociation investmentinvestment adviserllccommissionsecadviserassociationsecurities exchange

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $25K $25,000 $10K–$100K
Entities 2
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 12
  • Walter F. Grenda, Jr. violated a Commission order barring him from association with an investment adviser
  • Walter F. Grenda, Jr. aided and abetted violations of the Investment Advisers Act of 1940
  • Walter F. Grenda, Jr. violated a July 2015 Commission order barring him from association with an investment adviser
  • Walter F. Grenda, Jr. aided and abetted violations of the Investment Advisers Act of 1940
  • Securities and Exchange Commission announced resolve its claims against Walter F. Grenda, Jr.
  • Walter F. Grenda, Jr. was charged with violating a July 2015 Commission order
  • Walter F. Grenda, Jr. was charged with aiding and abetting violations of the Investment Advisers Act of 1940
  • Securities and Exchange Commission filed Securities and Exchange Commission v. Grenda Group, LLC, et al.
  • Securities and Exchange Commission settles charges with Grenda Group, LLC, et al.
  • Securities and Exchange Commission agreed to resolve claims against Walter F. Grenda, Jr.
  • Walter F. Grenda, Jr. violated July 2015 Commission order
  • Walter F. Grenda, Jr. aided and abetted violations of the Investment Advisers Act of 1940
PDF (from attached: complaint)
Text layers
Extracted body text (2,254c)
SEC Settles Charges with Previously Barred Buffalo, N.Y. Adviser Litigation Release No. 24377/ December 20, 2018 Securities and Exchange Commission v. Grenda Group, LLC, et al., No. 18-cv-00954 (CCR) (W.D.N.Y.) (filed August 30, 2018) The Securities and Exchange Commission today announced that it has agreed to resolve its claims against Walter F. Grenda, Jr., who was charged with violating a July 2015 Commission order barring him from association with an investment adviser and with aiding and abetting violations of the Investment Advisers Act of 1940. According to the SEC's complaint, Walter Grenda continued to associate with Grenda Group, LLC - an entity he and his son, Gregory M. Grenda, formed in part to replace his previous investment advisory business, Reliance Financial Advisors, LLC - despite a July 2015 Commission order barring him from association with an investment adviser with the right to reapply after three years. The SEC alleged, among other things, that Walter Grenda met with a prospective client and current clients in Grenda Group's offices and made discretionary changes to clients' investment accounts. The SEC also alleged that Walter Grenda repeatedly impersonated his son on telephone calls to the firm's broker-dealer, after which the broker-dealer terminated its relationship with Grenda Group. Without admitting or denying the allegations, Walter Grenda consented to a final judgement, entered on December 7, 2018 by the Honorable Christina Clair Reiss in the Western District of New York, permanently enjoining him from violating the antifraud provisions of Sections 206(1) and 206(2) and the associational bar provision of Section 203(f) of the Advisers Act. He was also ordered to pay a $25,000 civil penalty. In addition, on December 20, 2018, the Commission issued an order against Walter Grenda, barring him from association with an investment adviser, with no right to reapply. The SEC's litigation against Grenda Group and Gregory Grenda, who were charged with permitting Walter Grenda's association and making deceptive statements and material omissions to advisory clients, is ongoing. For further information, see Press Release 2018-172 (August 30, 2018), and Litigation Release No. 24253. SEC Complaint
OCR text (2,254c · html-text · 99% conf)
SEC Settles Charges with Previously Barred Buffalo, N.Y. Adviser Litigation Release No. 24377/ December 20, 2018 Securities and Exchange Commission v. Grenda Group, LLC, et al., No. 18-cv-00954 (CCR) (W.D.N.Y.) (filed August 30, 2018) The Securities and Exchange Commission today announced that it has agreed to resolve its claims against Walter F. Grenda, Jr., who was charged with violating a July 2015 Commission order barring him from association with an investment adviser and with aiding and abetting violations of the Investment Advisers Act of 1940. According to the SEC's complaint, Walter Grenda continued to associate with Grenda Group, LLC - an entity he and his son, Gregory M. Grenda, formed in part to replace his previous investment advisory business, Reliance Financial Advisors, LLC - despite a July 2015 Commission order barring him from association with an investment adviser with the right to reapply after three years. The SEC alleged, among other things, that Walter Grenda met with a prospective client and current clients in Grenda Group's offices and made discretionary changes to clients' investment accounts. The SEC also alleged that Walter Grenda repeatedly impersonated his son on telephone calls to the firm's broker-dealer, after which the broker-dealer terminated its relationship with Grenda Group. Without admitting or denying the allegations, Walter Grenda consented to a final judgement, entered on December 7, 2018 by the Honorable Christina Clair Reiss in the Western District of New York, permanently enjoining him from violating the antifraud provisions of Sections 206(1) and 206(2) and the associational bar provision of Section 203(f) of the Advisers Act. He was also ordered to pay a $25,000 civil penalty. In addition, on December 20, 2018, the Commission issued an order against Walter Grenda, barring him from association with an investment adviser, with no right to reapply. The SEC's litigation against Grenda Group and Gregory Grenda, who were charged with permitting Walter Grenda's association and making deceptive statements and material omissions to advisory clients, is ongoing. For further information, see Press Release 2018-172 (August 30, 2018), and Litigation Release No. 24253. SEC Complaint