SEC v. David A. Nagler; and New Line Capital, LLC, No. LR-26319, District of New Mexico (June 4, 2025) — Press Release
raw: David A. Nagler and New Line Capital, LLC
David A. Nagler and New Line Capital, LLC, No. 1:25-cv-00516 (June 4, 2025)
The SEC charged New Line Capital and owner David A. Nagler for defrauding clients through misleading fee disclosures and undisclosed conflicts of interest in New Mexico.
New Mexico investment advisory firm New Line Capital, LLC, and its owner David A. Nagler face charges for violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The defendants allegedly misled clients by promising annual advisory fees would not exceed 2% of assets under management while actually charging higher rates. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with pre-judgment interest, and civil penalties.
The SEC has charged New Mexico-based investment advisory firm New Line Capital, LLC, and its owner, David A. Nagler, with breaching fiduciary duties and defrauding advisory clients. The defendants allegedly misled clients by claiming annual advisory fees would be capped at 2% of assets under management, despite failing to implement steps to limit fees to that level. Additionally, the firm failed to disclose conflicts of interest related to hourly fee services that were provided without proper client notification. The litigation, filed in the U.S. District Court for the District of New Mexico, alleges violations of the anti-fraud provisions of the Investment Advisers Act of 1940. To remedy the fraud, the SEC is seeking permanent injunctions, civil penalties, and the disgorgement of ill-gotten gains plus pre-judgment interest. The investigation was led by the SEC’s Denver Regional Office.
Exhibits & Attached Documents (1)
Extracted insights
- person civil penalties
- person David A. Nagler
- person fiduciary duties
- person Jason Spitalnick
- organization New Line Capital, LLC
- person permanent injunctions
- person rachel yeates
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Securities And Exchange Commission charged New Line Capital, Llc
- New Line Capital, Llc made false and misleading statements
- David a. Nagler breached fiduciary duties
- New Line Capital, Llc failed to disclose conflicts of interest
- Securities And Exchange Commission seeks permanent injunctions
- Securities And Exchange Commission seeks civil penalties
- Jason Spitalnick conducted investigation
- Rachel Yeates handled litigation
- New Line Capital, Llc charged advisory clients more than 2%
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26319 / June 4, 2025 Securities and Exchange Commission v. New Line Capital, LLC, et al., Case No. 1:25-cv-00516 (D.N.M. filed June 2, 2025) SEC Charges New Mexico Investment Adviser Firm and Owner With False And Misleading Statements And Failing To Disclose Conflicts Of Interest On June 2, 2025, the Securities and Exchange Commission charged New Mexico investment advisory firm New Line Capital, LLC and its owner and managing member David A. Nagler for breaching their fiduciary duties and defrauding their advisory clients by making false and misleading fee disclosures and failing to disclose related conflicts of interest. According to the SEC’s complaint, New Line and Nagler falsely disclosed that they would “take care to assure” that New Line’s annual advisory fees would not exceed 2% of a client’s assets under management when, in fact, they did not take steps to limit advisory fees to 2% and charged numerous advisory clients more than 2%. The complaint further alleges that New Line and Nagler misleadingly disclosed that New Line “may” offer hourly fee services when, in fact, New Line was providing such services without informing clients about those charges and without disclosing the financial conflicts of interest arising from their charging of hourly fees. The SEC’s complaint, filed in the U.S. District Court for the District of New Mexico, charges New Line and Nagler with violating the anti-fraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement of ill-gotten gains with pre-judgment interest, and civil penalties from both defendants. The SEC’s investigation was conducted by Jason Spitalnick and Rachel Yeates, and supervised by Marc Ricchiute and Nicholas Heinke of the SEC’s Denver Regional Office. The litigation will be handled by Ms. Yeates and Zachary Carlyle and supervised by Gregory Kasper and Mr. Heinke, all also of the SEC’s Denver Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26319 / June 4, 2025 Securities and Exchange Commission v. New Line Capital, LLC, et al., Case No. 1:25-cv-00516 (D.N.M. filed June 2, 2025) SEC Charges New Mexico Investment Adviser Firm and Owner With False And Misleading Statements And Failing To Disclose Conflicts Of Interest On June 2, 2025, the Securities and Exchange Commission charged New Mexico investment advisory firm New Line Capital, LLC and its owner and managing member David A. Nagler for breaching their fiduciary duties and defrauding their advisory clients by making false and misleading fee disclosures and failing to disclose related conflicts of interest. According to the SEC’s complaint, New Line and Nagler falsely disclosed that they would “take care to assure” that New Line’s annual advisory fees would not exceed 2% of a client’s assets under management when, in fact, they did not take steps to limit advisory fees to 2% and charged numerous advisory clients more than 2%. The complaint further alleges that New Line and Nagler misleadingly disclosed that New Line “may” offer hourly fee services when, in fact, New Line was providing such services without informing clients about those charges and without disclosing the financial conflicts of interest arising from their charging of hourly fees. The SEC’s complaint, filed in the U.S. District Court for the District of New Mexico, charges New Line and Nagler with violating the anti-fraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement of ill-gotten gains with pre-judgment interest, and civil penalties from both defendants. The SEC’s investigation was conducted by Jason Spitalnick and Rachel Yeates, and supervised by Marc Ricchiute and Nicholas Heinke of the SEC’s Denver Regional Office. The litigation will be handled by Ms. Yeates and Zachary Carlyle and supervised by Gregory Kasper and Mr. Heinke, all also of the SEC’s Denver Regional Office.