SEC Revokes Lufkin Advisors Registration Due to Fraudulent Cryptocurrency Activities

The US Securities and Exchange Commission (SEC) filed an administrative lawsuit against Lufkin Advisors LLC on Wednesday. Previously, Lufkin Advisors had proposed a settlement offer, which SEC accepted. SEC found that Lufkin Advisors engaged in fraudulent activities, including poor management of cryptocurrency assets, undisclosed investments with employers associated with company executives' spouses, and improper accounting practices. The company also failed to monitor investment values and comply with statutory requirements, including asset custody, reporting accuracy, and advisor record maintenance. Therefore, SEC permanently prohibits Lufkin Advisors from violating multiple provisions and corresponding rules of the Advisers Act in the future and revokes its registration. Lufkin Advisors neither admits nor denies the investigation results, but except for SEC's jurisdiction and certain investigation results, the company agrees to the order.