SEC Charges Advisor For Using Client Funds To Buy A Ski Home

The Securities and Exchange Commission (SEC) charged Seattle-basedinvestment advisor Dennis H. Daugs Jr. of Lakeside Capital Management LLC with fraudulently misusing client assets to make loans to himself, which he used to buy a ski home and a vintage car, and to settle with other disgruntled clients. Lakeside Capital and Daugs have agreed to pay $340,000 in disgorgement and prejudgment interest to make up for the benefits he got in misusing those funds plus a $250,000 penalty, Daugs is barred from the securities industry for five years, and an independent manager will be brought in to wind down Lakeside Capital.

SEC Director: Daugs used client funds to give...