NASCAR Stock Fund Adviser David Dube & Peak Wealth Face SEC Charges

Peak Wealth Opportunities LLC, a Florida-based investment fund and fund manager David W. Dube face Securities and Exchange Commission charges for failing to provide SEC examiners with records of a mutual fund advisory business that invested in NASCAR-related stocks.

Despite repeated requests by SEC examiners, Dube and Peak Wealth failed to furnish certain records to the SEC about a mutual fund they advised called the Stock Car Stock Index Fund.

According to an SEC order initiating administrative proceedings, Peak Wealth was the adviser to the Stock Car Stock Index fund from 2008 to June 2010. SEC examination staff requested records from Peak Wealth and Dube in 2010 while examining Peak Wealth’s advisory business and the operations of the fund.

The SEC further alleges that Dube and Peak Wealth:

• Failed to make and keep certain required financial records.
• Failed to withdraw Peak Wealth’s registration with the SEC and make other required filings.
• Failed to provide the fund’s board of directors with information reasonably necessary to assess Peak Wealth’s advisory fees.

Simultaneously with the SEC’s examination in 2010, the fund’s board requested information from Peak Wealth and Dube as part of the fund’s required annual evaluation of its advisory agreements. Section 15(c) of the Investment Company Act of 1940, which requires the annual evaluation, also requires advisers to provide their boards with information reasonably necessary to conduct those evaluations. Despite requesting additional time to respond to the board, Peak Wealth and Dube failed to provide any of the requested documents. The board subsequently terminated Peak Wealth’s advisory agreement and liquidated the fund by returning the money to investors.

Under the relevant rules, the SEC could seek to permanently bar Dube from association with an SEC registered investment adviser or broker dealer. The SEC alleges that Peak Wealth willfully violated Sections 203A and 204 of the Advisers Act of 1940 and Rules 203A-1(b)(2), 204-1(a)(1), 204-2(a)(1), (2), (4), (5), and (6) thereunder, and Section 15(c) of the Investment Company Act of 1940. The SEC charged Dube with willfully aiding and abetting and causing Peak Wealth’s violations.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.