- Associated Press - Wednesday, August 6, 2014

SAN DIEGO (AP) - A San Diego investment advisory company has been fined nearly $15 million in penalties for cherry-picking trades and misappropriating client money.

A U.S. Securities and Exchange Commission judge issued the penalty on Tuesday against J.S. Oliver Capital Management. The SEC alleges the company directed the most profitable trades to favored clients at the expense of other accounts.

The government also claimed co-founder Ian Mausner used more than $1 million for purposes that didn’t benefit clients - such as paying his wife in a divorce deal. He was penalized about $3 million.

Former employee Douglas Drennan was fined $410,000.

The men and the company also were told to repay about $ 2 million.

Messages left for Mausner and various attorneys for the company and Drennan weren’t immediately returned.

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