SEC-LR26497—03-06-26—SEC Final Judgment Against Former Investment Adviser Matthew J. Werthe and HSR Wealth Management for Cherry‑Picking Scheme, Misrepresentations, and Breach of Fiduciary Duties Resulting in Over One Million Dollars in Disgorgement, Interest, and Civil Penalties Source Documents: SEC Litigation Release No. 26497 Final Judgment (PDF, 9-pages, Filed 02/02/26) Order Granting Motion for Monetary Relief (PDF, […]
Category: HSR WEALTH MANAGEMENT (1)
HSR WEALTH MANAGEMENT was a California‑registered investment advisory firm based in the San Diego area and operated as a sole proprietorship by its founder, Matthew J. Werthe, who was its only owner, employee, and chief compliance officer. Established around June 2019, HSR Wealth Management provided discretionary investment advisory services to more than 50 clients and managed over 12 million dollars in assets, offering advice on equity stocks, fixed income securities, ETFs, mutual funds, and cash equivalents, with clients paying fees based on a percentage of assets under management. According to the SEC, Werthe, doing business as HSR Wealth Management, used a block trading account between May 2021 and March 2022 to conduct a cherry‑picking scheme that disproportionately allocated profitable trades to his personal account and unprofitable trades to client accounts, leading to findings that he violated antifraud provisions of the Securities Act, Exchange Act, and Investment Advisers Act and resulting in a final judgment imposing disgorgement, prejudgment interest, a civil penalty, and permanent injunctive relief.