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Investment Adviser’s Loss in SEC ‘Cherry-Picking’ Suit Upheld

Aug. 5, 2022, 8:23 PM

World Tree Financial LLC is still on the hook for more than $384,000 in disgorgement and interest after the Fifth Circuit declined to toss the SEC’s win in a suit alleging a “cherry-picking” trading scheme.

The district judge correctly determined the investment adviser and its founder Wesley Perkins engaged in a fraudulent scheme when they allocated favorable trades to themselves and clients they liked and unfavorable trades to clients they didn’t like, the US Court of Appeals for the Fifth Circuit said Thursday.

World Tree and Perkins argued that the SEC didn’t prove its claims by a preponderance of the ...