The U.S. Securities and Exchange Commission issued settled orders against registered investment adviser Momentum Advisors LLC, its former managing partner Allan J. Boomer, and its former chief operating officer and partner Tiffany L. Hawkins for breaches of fiduciary duty involving misuse of a private fund’s and portfolio companies’ assets. The SEC’s orders also cite supervisory, compliance, and custody-related failures at the adviser. From at least August 2021 through February 2024, Hawkins misappropriated approximately USD 223,000 from portfolio companies by using portfolio company debit cards in more than 100 transactions for personal expenses and by causing herself to be paid compensation above her authorized salary, while concealing the conduct from the adviser, a portfolio company bookkeeper, and SEC staff. The orders find that Boomer failed to reasonably supervise Hawkins despite red flags, and that he caused the fund to pay a business debt that should have been paid by an entity he and Hawkins controlled, resulting in an unearned benefit of USD 346,904; Momentum Advisors was found to have failed to adopt and implement adequate policies and procedures and to have the fund audited as required. Without admitting or denying the findings, all respondents consented to cease-and-desist orders. Hawkins agreed to pay a USD 200,000 civil penalty and accept an associational bar; Boomer agreed to pay a USD 80,000 civil penalty and accept a 12-month supervisory suspension; and Momentum Advisors agreed to a censure and a USD 235,000 civil penalty.

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