- Associated Press - Friday, June 3, 2016

CHARLOTTE, N.C. (AP) - The U.S. Securities and Exchange Commission has accused a Charlotte investment adviser of defrauding investors by secretly moving portions of real estate investments into transactions with companies he owned or operated himself.

The SEC said in a news release Thursday that 39-year-old Richard Wyatt David Jr. breached his fiduciary duty and failed to disclose his self-dealing to all of his investors. Authorities also say Davis received at least $1.5 million from bank accounts that contained investor funds when he was owed less than $150,000 in management fees.

The SEC says it has reached a settlement, pending court approval, in which Davis will return any ill-gotten gains, plus interest and penalties to be determined by the court. As part of the settlement, Davis won’t have to admit or deny the allegations.

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