U.S. Receiver Takes Over Firm of Accused Financial Advisor

A federal receiver on Friday took control of Financial Advisory Consultants, the Orange County investment firm whose owner, James P. Lewis Jr., is accused in a Securities and Exchange Commission lawsuit of defrauding thousands of investors who are owed $813.9 million.

Calls from distressed investors jammed the phones at Lewis’ Lake Forest offices as employees of receiver Robb Evans & Associates changed the locks and interviewed computer expert Steven Lyday, who had set up a system to track the investors. Lyday identified 3,290 investors with 4,102 active accounts as of December, according to the SEC.

In all, the investors were supposed to have a total of $791.1 million in Lewis’ Growth Fund and $22.8 million in his Income Fund.

The SEC has identified only about $2.3 million in liquid assets for Lewis and his company, although he owns several Southern California properties jointly with his estranged wife and a girlfriend and also has interests in at least two small private companies.

Robb Evans & Associates, appointed as receiver by U.S. District Judge Audrey Collins late Thursday, hoped to have an informational website set up for investors by noon today at www.facreceiver.com.

Federal officials and attorneys for Lewis’ family and friends said they didn’t know the whereabouts of the 57-year-old money manager. Lewis’ attorney, Douglas J. Pettibone, said his last contact with Lewis was a voicemail left Monday.

Pettibone has told the judge that he wants to withdraw as Lewis’ lawyer, leaving it unclear who would represent Lewis at a Jan. 22 hearing in the SEC suit.