Professional Investment Management and Douglas Cowgill Accused of Playing a Shell Game with Investors’ Funds

Professional Investment Management (“PIM”) and its president, Douglas Cowgill, are accused of committing fraud by the Securities and Exchange Commission. (“SEC”).

The SEC conducted an examination of PIM to verify the existence of client assets and discovered a shortfall in a money market fund account managed by PIM, according to the complaint filed by the SEC. According to account statements sent to clients, PIM stated that it held a total of approximately $7.7 million in a certain money market fund, however, the account actually held less than $7 million, according to the complaint.

The SEC claims that Cowgill tried to disguise the shortfall from SEC examiners by entering a false trade in PIM’s account records, according to the complaint. The alleged fake trade was later reversed, according to the SEC.

Cowgill purportedly provided the SEC investigative staff more false reports, and he later transferred funds from a cash account to another financial institution to eliminate the discrepancy in the money market account, according to the SEC. Essentially, Cowgill shuffled money from one asset to another in order to avoid being detected by the SEC investigators, according to the complaint.

The SEC started to examine PIM after discovering that the firm had failed to arrange for independent verification of client assets as required by law and had filed a notice withdrawing its registration with the SEC, according to the complaint.

The Peiffer Wolf securities practice attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with virtual currency investments. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.