Andrew Nash

The Securities and Exchange Commission (SEC) has obtained a final judgment against El Capitan Advisors, Inc. and its principal, Andrew Daniel Nash, for misappropriating $15.3 million from a public company client. The SEC alleged that Nash and El Capitan, acting as investment advisers, breached their fiduciary duties by siphoning millions from the client’s accounts under the guise of cash management services.

Instead of managing the funds as agreed, Nash transferred more than $15 million out of client accounts, using a portion of it to purchase a $4.6 million Santa Barbara home. To cover his tracks, he allegedly fabricated account statements and filed misleading Form ADV reports with the SEC that overstated the firm’s assets under management.

Without admitting or denying the charges, Nash and El Capitan consented to final judgments, which included permanent injunctions and significant financial penalties. Nash was ordered to disgorge $4.6 million plus interest and pay a $3.45 million civil penalty. El Capitan was ordered to return $10.7 million plus interest.

If you were a client of El Capitan Advisors or entrusted your funds to Andrew Nash and suspect misconduct or mismanagement, you may have legal options to recover your losses. Contact ChapmanAlbin today for a free consultation.