July 2017 -San Antonio, TX
The Texas State Securities Board (TSSB)entered a disciplinary order against San Antonio investment adviser Michael Keith Parish for violations of Board Rule 116.17, known as the “custody rule” which prohibits registered investment advisers from maintaining custody of client funds and/or securities unless certain safeguards are implemented and/or the investment adviser satisfies compliance with an exemption from such safeguards. Link to TSSB Disciplinary Order.
According to the TSSB Order, Parish did not maintain a balance sheet, income statement and general ledger and did not implement the safeguards required by Section 116.17(b) of the Board Rules.
Parish was fined $5,000 and his registration as an investment adviser was suspended for 30 days. In addition Parish was ordered to retain an outside auditor registered with the Public Company Accounting Oversight Board (PCAOB) to conduct an audit of all funds under his management.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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