SEC Revokes Registration of Lufkin Advisors in Context of Fraudulent Crypto Activity

The U.S. Securities and Exchange Commission (SEC) initiated an administrative proceeding against Lufkin Advisors LLC on Wednesday. This follows a settlement offer from Lufkin Advisors, which the SEC accepted. The SEC found that Lufkin Advisors engaged in fraudulent activity, including mismanagement of crypto assets, undisclosed investments with an employer related to the spouse of the firm’s principal, and improper accounting practices. The firm also failed to monitor investment values ​​and adhere to regulatory requirements, including custody of assets, accuracy of reports, and maintenance of advisor records. As a result, the SEC permanently cautioned Lufkin Advisors against future violations of multiple sections of the Advisers Act and corresponding rules, and revoked their registration. Without admitting or denying the findings, except for the jurisdiction of the SEC and certain findings, Lufkin Advisors consents to the order.