Washington Department of Financial Institutions, Security Division required that we sign a consent order, which stated that Adams Financial Concepts, LLC would not take custody of client funds in a hedge fund for 10 years. We readily agreed to this requirement, as the firm had already made the business decision to not create or manage another hedge fund.
The most common question I receive from clients and prospective clients regarding this consenter order is, “Did any of the investors lose money because of this?” The short and direct answer is no. No investors lost money due to this regulator event.
Our firm filed suit against the third-party independent auditor for not delivering the audits as required, as did three of the four fund investors. The suit was settled, the terms of which are confidential.
Again, none of our clients lost money, and there was never any allegation that they did. This consent order also has nothing to do with our ongoing investment management and wealth creating practices that we provide our Adams Financial Concepts clients.
If you’d like to know more, please contact our office and I will be happy to speak with you about it anytime.
Legal and Regulatory Compliance
I have put together publicly available documents which you can view and download. Although I am not required by law to disclose this information, I’ve been looking forward to sharing it. These documents explain what I’ve been through these last few years as I’ve fought to protect my financial management business, so I can continue to create wealth for my clients.
Adams Financial Partners, L.P. and Adams Financial Concepts, LLC v. Patke and Associates, Ltd.,
U.S. Federal District Court for the Western District of Washington (settled – 2017)
- Order Denying Summary Judgement
- Plaintiff AFP and AFC’s Answer to Motion for Summary Judgement
- Defendant Patke’s Motion for Summary Judgement
There is one other item on Broker Check unrelated to the above, which was filed by Dain Rauscher.
Of course, if you ever have questions or comments about these documents, you can call our office anytime.