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Media Contact: LARA Communications 517-373-9280
Email: mediainfo@michigan.gov
September 11, 2017 - LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a Consent Order revoking the registrations of Anthony Cherniawski, investment adviser representative, and The Practical Investor, LLC (TPI), an investment adviser firm, both of Lansing, MI.
“The Michigan Uniform Securities Act prohibits dishonest or unethical practices in the securities industry,” said CSCL Director Julia Dale. “Our bureau will continue to take strong regulatory actions to protect the public. Consumers should always have a clear understanding of long- and short-term investments and the risk involved. Frequently monitor your investments to avoid any potential for substantial losses.”
An investigation by CSCL prompted by multiple consumer complaints disclosed that Cherniawski and TPI recommended and carried out investment strategies for clients for significantly longer time periods than stipulated in the issuer’s prospectus as suitable, leading to massive losses. A married couple’s three separate IRA accounts dropped in value from approximately $96,913 in or around 2010 to approximately $1,814 in the second quarter of 2016. Another client held an account valued at approximately $12,186, in or around 2008, which dropped to $205, in the first quarter of 2016. Fifty-six of 58 of the respondents’ clients’ investments were held similarly. The investigation led CSCL to issue the Notice of Intent to Revoke Investment Adviser and Investment Adviser Representative Registrations and the Consent Order Revoking Investment Adviser and Investment Adviser Representative Registrations.
The revocations will be final within 90 days after the effective date of the orders to allow time to transfer current clients to other advisers. Cherniawski and TPI neither admit nor deny any of the allegations in the Notices of Intent, agree to the revocation of their respective registrations, and to pay a jointly imposed fine of $500.00 within 60 days.
A person who willfully violates MUSA or an order issued under that Act is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $500,000.00 for each violation, or both.
Before entering into an investment, Michigan consumers are encouraged to contact CSCL and the bureau can run a registration check on any investment adviser, broker-dealer, professional, or product. CSCL can be reached at 517-241-6345 or online at: www.michigan.gov/securities. Investors are reminded that there is no replacement for their own due diligence. Investor education materials may also be found using that link. Securities orders, once issued, entered and served, can now be found online at http://www.michigan.gov/lara/0,4601,7-154-61343_35395_77138_77140_77142---,00.html.
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