SEC Names Derek Uldricks in Regulatory Action Involving Conflicts of Interest
Derek Uldricks (CRD #: 6842446), a broker registered with Emerson Equity, was the subject of a recent SEC regulatory action, according to his BrokerCheck record, accessed on July 9, 2022. Read on to learn more about Derek Uldricks’s conduct as a broker.
SEC Regulatory Action
On May 23, 2022, the Securities and Exchange Commission filed a regulatory action against Derek Uldrick and Virtua Capital Management.
The SEC alleges that, from early 2017 through 2019, the respondents failed to sufficiently disclose conflicts of interest relating to their management of seven private investment funds.
According to the SEC, Derek Uldricks and the other respondents managed several real estate projects, in which they almost exclusively invested fund assets. The SEC alleges that the near-exclusive investment in these projects constituted a conflict of interest.
The SEC further alleges that the respondents failed to disclose certain fees paid to these affiliated real estate projects.
The SEC concluded that, through these alleged actions, Derek Uldricks violated Sections 206(2) and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder.
Sections 206(2) and 206(4) of the Advisers Act
Section 206(2) prohibits Registered Investment Advisors (RIAs) from using fraudulent schemes and devices. Under this rule, RIAs must also disclose to their clients their role in the purchase or sale of any security concerning that client.
Section 206(4) prohibits fraudulent practices in investment adviser marketing. Rule 206(4)-8 specifically prohibits false statements and the omission of material facts concerning pooled investment vehicles.
The SEC penalized Derek Uldricks with the following sanctions:
- $60,000 civil penalty
- A cease-and-desist order
Derek Uldricks has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 65 – Uniform Investment Adviser Law Examination
- Series 7TO – General Securities Representative Examination
- SIE – Securities Industry Essentials Examination
Derek Uldricks is a registered broker in 40 states.
He previously worked for Virtua Capital Management (CRD#:289606).
Kurta Law Can Help
If you worked with Derek Uldricks and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
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