SEC v. Jeffrey Higgins - Securities Fraud Misappropriation
Summary
The SEC charged former investment adviser Jeffrey Higgins with misappropriating more than $800,000 from twelve clients through a sham investment program between September 2017 and February 2024. Higgins allegedly used client funds to purchase securities at a transfer agent without discount, then used falsified documents to divert securities to his personal account. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties.
What changed
The SEC filed a complaint in the U.S. District Court for the District of Oregon charging Jeffrey Higgins, a former registered representative and investment adviser representative, with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The complaint alleges Higgins created a sham investment program claiming to purchase discounted securities through a third-party transfer agent, but actually purchased securities without discount and diverted them to his personal brokerage account using falsified documents and signatures.\n\nInvestment advisers and broker-dealers should review their supervisory procedures, particularly around client fund transfers, third-party investment programs, and document verification. Registered representatives must ensure any investment programs offered to clients are legitimate and properly disclosed. Investors should verify the legitimacy of any investment opportunities, especially those promising unusual returns or involving non-traditional purchase arrangements.
What to do next
- Review internal controls for investment advisory accounts
- Screen representatives for unauthorized transactions and document authenticity
- Report any suspicious activity consistent with AML/KYC obligations
Penalties
Disgorgement with prejudgment interest and civil penalties (specific amounts to be determined by court)
Archived snapshot
Apr 7, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Jeffrey Higgins
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26521 / April 6, 2026
Securities and Exchange Commission v. Jeffrey Higgins, No. 2:26-cv-00676 (D. Or. filed Apr. 6, 2026)
SEC Charges Former Investment Adviser for Allegedly Misappropriating Securities From His Clients
The Securities and Exchange Commission today charged former Baker City, Oregon resident Jeffrey Higgins with allegedly misappropriating more than $800,000 worth of securities from twelve of his investment advisory and brokerage clients.
The SEC’s complaint alleges that, between September 2017 and February 2024, Higgins, a former registered representative and investment adviser representative, misappropriated clients’ securities through a sham investment program that he created. According to the complaint, Higgins falsely told clients that he had created an investment program to purchase discounted securities at a third-party transfer agent, and then sell the securities for a profit. The complaint alleges that, in reality, Higgins used client funds to purchase securities at the transfer agent without any discount, and used falsified documents and signatures to divert some of those securities to his personal brokerage account.
The SEC’s complaint, filed in the U.S. District Court for the District of Oregon, charges Higgins with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, including conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties.
The SEC’s investigation was conducted by Duncan C. Simpson LaGoy and was supervised by Erin Wilk, David Zhou, and Jason H. Lee of the SEC’s San Francisco Regional Office. The litigation will be led by Mr. Simpson LaGoy and Jason M. Bussey.
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