Adviser Charged with Having False Credentials in its Form ADV

May 5, 2017

The SEC brought an enforcement action against Michelle M. Smith and Source Financial Advisors, LLC, a registered investment adviser Smith founded and owns. The SEC found that Source Financial misrepresented on its Form ADV brochure supplements that Smith earned a marketing degree from RadfordUniversity. In fact, the SEC stated that Smith attended Radford, but did not graduate. In addition, from 2012 through 2016, the SEC also found that Source misrepresented in materials distributed to clients and prospective clients that Smith held the Certified Financial Planner credential. In fact, it was found that Smith took CFP coursework but did not earn the CFP credential. The SEC stated that Smith was aware of these misrepresentations as they were made. She and Source corrected the statements  after they were contacted by SEC staff in 2016.

Click IA-4702 (May 5, 2017) to access the SEC enforcement order.