Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisory firm Yellowstone Partners, LLP, of Idaho Falls, and its two principals, David Hansen (Hansen) and Cameron High (High) fraudulently overbilled clients and charged fees for work not performed. According to records kept by The Financial Industry Regulatory Authority (FINRA) High was employed by Crown Capital Securities, L.P. through October 2017. If you have been a victim of Hansen’s and High’s misconduct our firm may be able to assist you in recovering funds.
According to the SEC, Yellowstone overbilled investment advisory clients as part of a fraudulent scheme to inflate the firm’s income. The SEC claims that High participated in the fraudulent scheme by causing the overbilled management fees to be charged to and taken from client accounts. The Defendants are accused and later pled guilty to stealing over $11.8 million from over 120 client accounts by overbilling clients for investment advisory management fees that were never earned.
The SEC alleged that the overbillings were taken from unsuspecting clients to generate additional revenue to cover Yellowstone’s operating expenses and to support Hansen’s lavish lifestyle. The SEC found that the advisors targeted specific accounts in a small number of larger accounts where overbilled fees would be less noticeable. In carrying out their scheme, the advisors allegedly billed client accounts twice for periodic management fees taking double the amount of fees earned during particular periods. In addition, the advisors also failed to maintain current investment advisory agreements for each client and to keep such records easily accessible for a period of five years.
On March 14, 2018, High pled guilty to one count of wire fraud before the United States District Court for the Northern District of Idaho.