SEC Charges Kimberly Sredich with Misappropriation Scheme
On April 18, 2019, the SEC charged Kimberly Sredich, a Michigan resident, with misappropriating funds from brokerage customers of a registered broker-dealer with which she was associated. The SEC’s complaint alleges that between 2014 and 2018, Kimberly Sredich sold securities in at least 15 customer accounts and misappropriated the proceeds of the sales.
According to the complaint, many of the customers were elderly. The complaint further alleges that Kimberly Sredich forged customers’ signatures and used blank letters of authorization previously signed by customers to transfer funds to a company she controlled. She then allegedly transferred most of the misappropriated funds to a personal bank account.
The SEC’s complaint filed alleges that Kimberly Sredich violated Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In a parallel action, the U.S. Attorney’s Office for the Eastern District of Michigan filed criminal charges against Kimberly Sredich, who was arrested by the Federal Bureau of Investigation.
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