ADMINISTRATIVE PROCEEDING
File No. 3-21652

September 12, 2023 - The Securities and Exchange Commission today charged True Capital Management, LLC, a San Francisco-based investment adviser to professional athletes, entertainers, and entrepreneurs, for acting as an unregistered broker. According to the SEC's order, True Capital was regularly paid for brokerage services in securities transactions with its advisory clients.

The order finds that True Capital created and was the investment adviser to funds in which its individual clients invested. For at least nine years, the order finds, True Capital regularly received transaction-based compensation for arranging sales of real estate investments to its individual and fund clients. The order further finds that True Capital solicited its individual clients to buy real estate investments, gave them advice about the investments, negotiated the terms of the investments, and sometimes sent the investors' money to the sellers. Between September 2017 and June 2021, according to the order, True Capital was paid by sellers or by its own fund clients for performing these brokerage activities in at least 27 transactions. The order finds that True Capital charged advisory fees to its clients in addition to this transaction-based compensation.

True Capital consented to the entry of the SEC's order finding that it violated the broker-dealer registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Without admitting or denying the findings, True Capital agreed to a cease-and-desist order, a censure, disgorgement of $594,897 plus prejudgment interest of $76,896, and a $150,000 civil penalty to settle the charges.

The SEC's investigation was conducted by Ruth Hawley and supervised by Jeremy Pendrey, Andrew Dean and Corey Schuster, all of the Division of Enforcement's Asset Management Unit. The SEC's examination that led to the investigation was conducted by Leonard Hellman and supervised by Kathleen Purcell and Thu Ta of the Division of Examinations in the San Francisco Regional Office.