An unregistered investment advisor in Santa Monica misappropriated $356,000 of client funds, the Securities and Exchange Commission alleged in a complaint.
David Clark Stewart, 38, told about 25 clients for whom he managed $3 million that he was investing their money in stocks, the complaint alleged. Instead, Stewart used some of his clients’ funds to buy two homes and lease luxury cars, including a BMW and a Porsche, the SEC alleged.
Without admitting or denying guilt, Stewart agreed to a consent order barring him from future violations of securities laws, the SEC said. No penalties were assessed, and Stewart has repaid about $154,000, the SEC said. Stewart could not be reached for comment.