A Scottsdale man, John V. Feneck, and his affiliated company, Feneck Consulting Group, LLC, have been ordered to pay $676,901 in restitution and a $25,000 administrative penalty for committing investment advisory fraud.
The Commission found Feneck, a former securities salesman, had previously been registered as a securities salesman in other states, but he and his company were not licensed to provide investment advisory services when they recommended to more than 100 clients to invest in mining and energy companies.
Additionally, the Commission found Feneck executed transactions in some of his clients’ brokerage accounts.
The Commission found Feneck and his company failed to disclose to some of their clients that they were receiving consulting fees and stock options from some of the mining and energy companies in which they were advising clients to invest.
In settling this matter, the respondents admit to the Commission’s findings only for the purposes this proceeding and agree to the entry of the consent order.