Money manager Timothy Roth, who worked for Comprehensive Capital Management, an investment adviser registered with New Jersey, stands accused of stealing over $6 million from several employee deferred compensation plans for whom he provided investment advice.  The SEC, which obtained a court order freezing the assets of Mr. Roth, charges that Roth stole his clients’ mutual fund (MF) shares, liquidated the shares, and sent the ill-gotten gains to various accounts and companies under his control.

    SEC Allegations.   During a 4-month period - from October 2010 through February 2011 - Roth stole over $6 million worth of mutual fund shares from his client's Plan accounts.  Roth, who worked out of CCM’s office in Illinois, allegedly managed the crime, as follows:

• he secretly caused the Plans’ MF shares to be transferred to an account under his control - without request or authorization by the Plans or Plans’ participants. 
• he sold those MF shares, and funneled the cash proceeds to various accounts and companies under his control or for his benefit.
• to conceal his actions, Roth sent clients bogus account statements that omitted the surreptitious transfers. 

Roth is charged with, among other things, violating Section 10(b) of the SEA of 1934 and Rule 10b-5 thereunder.   The SEC seeks preliminary and permanent injunctions, disgorgement, and civil penalties from Roth.  Roth’s companies are named as relief defendants and the SEC seeks disgorgement from them.   [SEC Litigation Rel. 21895, 3/23]