SEC v. Parker Terrill Austin, Embarcadero Capital Advisors, Inc. — U.S. Securities and Exchange Commission Litigation Release No. 26395, dated September 11, 2025.
The SEC charged an investment adviser, Parker Terrill Austin, and his firm, Embarcadero Capital Advisors, Inc., with fraud. Austin allegedly stole client data from his previous employer to start his own firm and then lied about his termination and disciplinary history to attract new clients.
In Plain English
Imagine someone working at a company that helps people with their money. This person secretly copied important private information about the company's clients, like their names and how much money they had. Then, they left and started their own company. To get clients for their new company, they lied about why they left their old job and pretended they had a clean record, which wasn't true.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Planning to Start a New Firm By the spring of 2023, Parker Terrill Austin, while employed at an investment advisory firm, decided he wanted to start his own firm, Embarcadero Capital Advisors, Inc. He began taking steps to prepare for this launch.
- Stealing Client Information To gather clients for his future firm, Austin sent nonpublic personal information of his then-employer's clients to his personal email address. This information included client names and account balances.
- Instructing Others to Steal Data Austin also directed clerical employees to send client nonpublic personal information to his personal email. This data included names, addresses, phone numbers, email addresses, account values, and fees charged.
- Sharing Confidential Data On at least one occasion, Austin forwarded the stolen client nonpublic personal information to his future business partner at Embarcadero, who was not affiliated with his then-employer.
- Breaching Fiduciary Duty While still employed, Austin allegedly breached his fiduciary duty to a client by placing them in investments that were contrary to the client's explicit instructions.
- Termination from Prior Firm Upon learning of Austin's misconduct, including the data theft and client investment breaches, his former employer terminated his employment.
- Launching New Firm Shortly after being terminated, Austin launched Embarcadero Capital Advisors, Inc. with his business partner.
- Fraudulent Client Inducement Austin and Embarcadero then engaged in a scheme to fraudulently induce clients to join the new firm. They misrepresented Austin's disciplinary history and the circumstances of his termination from his prior firm.
- Misleading Public Disclosures These misrepresentations about Austin's past were made on Embarcadero's website and in other publicly available informational brochures that the firm filed with the SEC.
The Enforcement Action
On September 10, 2025, the SEC charged Parker Terrill Austin and Embarcadero Capital Advisors, Inc. with fraud and improper disclosure of client nonpublic personal information. The complaint alleges violations of antifraud provisions of the Investment Advisers Act of 1940 and aiding and abetting violations of Regulation S-P. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties.
Named in this action: Parker Terrill Austin, Embarcadero Capital Advisors, Inc..