An Atlanta-based wealth advisor fleeced his clients out of nearly $300,000, according to the Commodity Futures Trading Commission. Arthur Toole III ran the Billionaire Investors Group, The Toole Group and Catalyst Traders—commodity pools in which investors combine their money and trade in futures contracts and commodities. The commission said instead of using clients' money on trades, Toole spent $244,000 on personal expenses and costs not related to trading, the Atlanta Journal-Constitution reports. He settled the charges with the CFTC by agreeing to a $200,000 fine and being forced to pay $293,000 back to investors. Toole and his firms were also banned from entering any future transactions involving commodity interests and from registering with the CFTC.
First Citizens Wealth Management Selects Envestnet
The wealth management arm of First Citizens Bank announced Thursday that it would adopt the Envestnet platform to unify the technology experience for all its advisors and clients across business lines. First Citizens said it would take advantage of Envestnet’s capabilities with risk profiling, account onboarding, portfolio management, administrative workflows, client reporting and billing, compliance, and business management oversight tools. Michael Wilson, the managing director of First Citizens Wealth Management, called it “an important step toward creating a more integrated, enhanced experience for our clients as we help them grow, manage and preserve their wealth.”
Sax Wealth Advisors acquires Sterling Portfolio Management
This week, Clifton, New Jersey–based investment advisory firm Sax Wealth Advisors LLC announced the acquisition of Tuxedo, New York–based Sterling Portfolio Management LLC. This purchase will add Sterling’s $40 million to Sax’s assets under management, now totaling about $850 million. Gregory Duffy, Sterling founder, will join the Sax advising team and continue guiding previously established clients. “Sax Wealth Advisors was the natural next step for our firm,” Duffy said. “We espouse the same principles on empirically supported investment education, and intend to utilize our combined knowledge and expertise to best serve our clients.”