SEC bars former COO of advisory firm for misuse of customer funds
Gilbert Fluetsch is alleged to have spent customers' investment funds mostly on unrelated business and personal expenses.
The Securities and Exchange Commission has barred the former chief operating officer of an investment advisory firm for misusing customer funds.
Gilbert Fluetsch was the COO of California-based Hoplon Financial Group from 2010 to May 2014. The 52-year-old Escondido, Calif., native was alleged to have aided the firm’s owner, Daniel B. Vazquez Sr., in creating the New Economic Opportunities Fund I, or NEON, in 2011.
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According to the SEC, they pooled investors’ funds to purchase and flip residential real estate properties, then misused the funds at a total loss to investors.
Mr. Fluetsch was not immediately available for comment.
According to a January 2018 complaint, Mr. Vazquez and Hoplon sold membership units in the fund, mainly from retirement account funds, and raised $2.18 million from 27 investors between 2011 and 2014. With Mr. Fluetsch’s assistance, they misused the funds, mostly on unrelated business or personal expenses.
In May 2018, Mr. Fluetsch was permanently enjoined from engaging in future acts of fraud and deceit. He was liable for disgorgement of $114,734.72.
Under the order barring him from the industry, the SEC has prohibited Mr. Fluetsch from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent or nationally recognized statistical rating organization.
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Any reapplication for association stipulates that Mr. Fluetsch satisfy any disgorgement or arbitration requirement set by the SEC.
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