Palisade firm and adviser permanently barred by Securities Commissioner
DENVER (Oct. 18, 2017) — Colorado Securities Commissioner Gerald Rome has signed an order permanently revoking the securities licenses of Barbara Endres and her firm, Lifetime Wealth Advisors, LLC, in the state of Colorado. Endres’ firm is located in Palisade, Colorado. Both Endres and Lifetime Wealth Partners hold additional securities licenses in Massachusetts and California.
The revocation followed a routine examination conducted by the Division of Securities, part of the Department of Regulatory Agencies, in July of 2017. During that examination, staff discovered that Endres was utilizing an investment strategy that involved trading between 50 and 100 percent of her clients’ assets in one stock ahead of earnings announcements. This extremely risky strategy, while legal, required full disclosure by the adviser of the potential risk of loss of the entire account value in order to make clients aware of what was at stake.
Examiners with the Division found, however, that the respondents both omitted material facts and made untrue statements to clients regarding the trading strategy, including guaranteeing returns to make up for prior losses. Further, respondents failed to update the firm’s client disclosure documents with the Division to reflect the use of this strategy.
The Division also alleged in a verified petition in support of a summary suspension proceeding that the respondents failed to acknowledge or follow the wishes of certain clients who requested that Endres’ stop putting their money into the trading strategy.
“This enforcement action is a prime example of why the work of the examinations section is so crucial for the protection of Colorado investors,” commented Commissioner Rome. “The issues discovered during a routine examination constituted violations of the anti-fraud provisions of our Securities Act, and we took swift action to stop Ms. Endres from causing any additional harm to investors, as well as to maintain the integrity of the securities marketplace in our state.”
The Commissioner’s order bars Ms. Endres and Lifetime Wealth Advisors from association with any licensed broker-dealer, investment adviser, or federally covered adviser that conducts business in Colorado.
The respondents have agreed not to contest the order, not to reapply for securities licensure in Colorado, and to cease all securities-related recommendations, associations, and business in the state.