CEO LOGGED INTO CLIENT ACCOUNTS TO STEAL $2.4 MILLION IN FEES!

U.S. Securities and Exchange Commission Litigation Release No. 26515, dated March 31, 2026.

The SEC secured judgments against an investment adviser and its CEO for allegedly charging over $2.4 million in unauthorized fees to more than 200 clients. The adviser and CEO accessed client accounts without consent to approve these improper fees. Both defendants consented to permanent injunctions and will pay disgorgement, prejudgment interest, and civil penalties, with the CEO facing potential industry bars.

In Plain English

Imagine you hired someone to manage your money, like a financial helper. This helper secretly took extra money from your account, more than you agreed to, and sometimes even logged into your account without asking to make it look like you approved. The SEC stepped in and made sure this helper and their boss paid back the money they took unfairly, plus extra penalties, and stopped them from doing this to anyone else.

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

  1. Charge Unauthorized Fees From at least February 2019 through at least July 2023, Eliseo Prisno and P/E Capital Investment Management Partners charged advisory clients approximately $2.4 million in quarterly fees. These fees were not fully disclosed in advance and were not expressly authorized in writing by the clients.
  2. Deceptively Access Client Accounts In some instances, Prisno and P/E Capital allegedly accessed client accounts using the clients' login credentials. This was frequently done without the clients' knowledge or consent to approve the unauthorized fees.
  3. Approve Fees Without Authorization By accessing client accounts with their credentials, Prisno and P/E Capital were able to approve actions on the clients' behalf, including the charging of these improper fees, effectively impersonating the clients to financial institutions.

The Enforcement Action

On March 10 and March 26, 2026, the U.S. District Court for the Northern District of Illinois entered judgments in the SEC’s enforcement action against P/E Capital Investment Management Partners and its CEO, Eliseo Prisno. The judgments permanently enjoin Prisno and P/E Capital from violating antifraud provisions of the Investment Advisers Act of 1940. The defendants consented to the judgments without admitting or denying the allegations. The judgments order each defendant to pay disgorgement with prejudgment interest and a civil penalty, with amounts to be determined by the Court. The judgment as to Prisno also enjoins him from acting as or being associated with any broker, dealer, or investment adviser, permanently or for a specified duration, to be determined by the Court.