Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, June 3, 2013

SEC Charges Atlanta Attorney with Defrauding Investors of $5.4 Million

On May 31, 2013, the SEC charged Robert A. Gist (“Gist”), an Atlanta attorney and former sports agent, and Gist, Kennedy & Associates, Inc. (“Gist Kennedy”), a company that Gist controls, with defrauding at least 32 customers out of at least $5.4 million while acting as an unregistered broker from approximately 2003 to the present.

According to the SEC’s complaint, Gist obtained the customers’ funds on the fraudulent pretense that he would invest conservatively in corporate bonds and other securities. Instead, Gist used the funds for his personal expenses, for the payment of purported dividends and proceeds from securities sales that he falsely claimed to have purchased on behalf of his customers, and for the operation of a company that he controlled until early 2013 known as ENCAP Technologies, LLC. The complaint further alleges that Gist regularly created and provided the customers of Gist Kennedy with fictitious account statements.

Without admitting or denying the SEC’s allegations, Defendants Gist and Gist Kennedy agreed to settle the case against them. The settlement is pending final approval by the court and would require disgorgement of $5.4 million plus prejudgment interest and civil penalties to be determined.

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