CCO Is Barred and Faces Jail Time for Overbilling

The Securities and Exchange Commission charged Cameron G. High of Yellowstone Partners, LLP, of Idaho Falls, for fraudulently overbilling the firm’s clients and charging fees for work not performed. That amount to a total of over $11 million in excess charges from more than 100 of the firm’s clients. Mr. High faces up to 20 years in prison for wire fraud in connection with the overbilling.

The primary bad actor in the case is David Hansen, the former CEO of Yellowstone Partners. He is also on fraud charges and facing jail time.

It’s the CCO charges that caught my attention. High also held a 5% interest in Yellowstone and was a registered investment adviser representative.

According to the SEC complaint, it was Hansen who masterminded and ordered the overbilling. It was a combination of double charging and adding extra charges to the bills.

Certainly, a CCO should be subject to charges if he or she was involved in the wrongdoing. According to the complaint, and I infer from the criminla charges, Mr. High was involved in the wrongdoing.

Mr. High knew the overbilling was improper, but still followed the orders of Mr. Hansen. Hr. High also lied to clients when the overbilling was discovered and blamed it on the custodian. There was a clear pattern of bad behavior and culpability.

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Author: Doug Cornelius

You can find out more about Doug on the About Doug page

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