ADMINISTRATIVE PROCEEDING
File No. 3-21673

September 18, 2023 - The Securities and Exchange Commission today filed settled administrative and cease-and-desist proceedings against Summit Planning Group, Inc. (Summit) and its sole owner and investment professional, Richard Urciuoli (Urciuoli), for investing advisory client assets in a volatility linked exchange traded product (ETP)-the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX)-for extended periods of time without having a reasonable basis to do so.

The SEC's order finds that, between July 30, 2021 and December 1, 2021, Summit, through Urciuoli, used its discretionary authority to buy and hold VXX in approximately 64% of all client accounts for time periods-between 34 and 86 trading days--that were inconsistent with the intended use of the product as described in its prospectus and pricing supplement. VXX is a complex, futures-linked exchange-traded note (ETN) designed to provide short-term exposure to a futures index derived from the Chicago Board Options Exchange Volatility Index. According to the SEC's order, the prospectus and pricing supplement explained that VXX should only be held for very short time periods, was intended to manage daily trading risks, and could entail significant costs if held for multiple trading sessions. The order finds that Urciuoli did not review either of these disclosure documents before purchasing VXX for Summit's advisory clients. According to the order, Summit and Urciuoli invested advisory client money in VXX in a manner that was unsuitable for those clients because they failed to adequately consider how the product's disclosed risks could impact the investment's performance when held for extended periods. The order finds that the client accounts holding VXX lost over $443,809 from Summit's VXX investments.

The order charges Summit and Urciuoli with willfully violating Section 206(2) of the Investment Advisers Act of 1940. It also charges Summit with willfully violating and Urciuoli with causing Summit's violations of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.

Without admitting or denying the SEC's findings, Summit and Urciuoli agreed to a cease-and-desist order and censures, and agreed to pay, jointly and severally, disgorgement of $8,476.36, prejudgment interest of $925.23, and civil penalties of $100,000. The order establishes a Fair Fund to return monies to injured investors.

This investigation was conducted by Stewart Gilson and supervised by Hane L. Kim and Tejal Shah of the SEC's New York Regional Office, with assistance from Ricardo Ramirez, Eric Baltuch, Raymond Slezak, and Merryl Hoffman of the Division of Examinations.