"Bruderman Asset Management LLC and Principal Matthew J. Bruderman Settle SEC Charges for Disclosure Violations"

The Securities and Exchange Commission (SEC) has announced that New York-based firm, Bruderman Asset Management LLC (BAM), and its principal, Matthew J. Bruderman, have agreed to settle charges over their failure to disclose the misuse of funds raised from their investment advisory clients, as well as their failure to implement adequate written policies to disclose conflicts of interest. According to the SEC’s order, BAM and Bruderman had advised at least 13 clients to invest a minimum of $6.1 million in three companies in which Bruderman had ownership interests, without informing them the money would also be temporarily used for other purposes like funding BAM's payroll and repaying loans to Bruderman or the companies with which he was affiliated. As a result, BAM and Bruderman will face a censure and must jointly and severally pay a civil penalty of $250,000. The investigation was conducted by members of the SEC’s Regional Office in New York.