What Happened at Momentum Advisors?

Momentum Advisors LLC, an SEC-registered investment advisory firm headquartered in New York, manages over $350 million in assets. The firm, founded by Allan Boomer and later joined by Tiffany Hawkins, positioned itself as a fiduciary committed to serving clients’ best interests. However, the SEC’s findings reveal a starkly different reality.

According to the SEC orders, between August 2021 and February 2024, Tiffany Hawkins misappropriated approximately $223,000 from portfolio companies of a private fund she co-managed with Boomer and advised through Momentum Advisors. Hawkins allegedly used portfolio company debit cards for over 100 personal transactions, including vacations, clothing, and other expenses unrelated to client interests. She also paid herself compensation exceeding her authorized salary, concealing her actions from Momentum Advisors, the portfolio companies’ bookkeeper, and even SEC staff during their investigation.

Allan Boomer, meanwhile, failed to adequately supervise Hawkins despite clear red flags of her misconduct. The SEC also found that Boomer caused the private fund to pay a $346,904 business debt that should have been covered by an entity he and Hawkins controlled, effectively benefiting themselves at the expense of fund investors. Compounding these issues, Momentum Advisors neglected to adopt and implement sufficient policies and procedures to prevent such misconduct and failed to ensure the private fund was audited as required by the Investment Advisers Act of 1940.

Thomas P. Smith, Jr., Associate Regional Director in the SEC’s New York Regional Office, stated, “Hawkins and Boomer breached their fiduciary duties and misused fund and portfolio company assets for their own benefit, all to the detriment of their clients.” This case highlights the risks investors face when advisors prioritize personal gain over their legal and ethical obligations.

The SEC’s Findings and Penalties

The SEC determined that Hawkins and Boomer violated the antifraud provisions of the Investment Advisers Act of 1940, while Momentum Advisors breached the Act’s compliance and custody rules. Without admitting or denying the findings, all three parties agreed to cease-and-desist orders. The penalties include:

• Tiffany L. Hawkins: A $200,000 civil penalty and an associational bar, prohibiting her from working in the securities industry.
• Allan J. Boomer: An $80,000 civil penalty and a 12-month supervisory suspension, limiting his ability to oversee investment advisory activities.
• Momentum Advisors LLC: A censure and a $235,000 civil penalty, reflecting the firm’s systemic failures.

These sanctions aim to deter future misconduct, but they do little to directly compensate affected investors. For those harmed by these actions, securities arbitration may offer a path to recovery.

Why This Matters to Investors

The Momentum Advisors case is a sobering reminder that even firms marketed as client-focused fiduciaries can fall short of their obligations. Fiduciary duty requires advisors to act in their clients’ best interests, disclose conflicts, and manage assets responsibly. When advisors like Hawkins and Boomer misuse funds or fail to supervise properly, investors can suffer significant financial losses.

For New York investors, this case hits close to home. Momentum Advisors operated in the heart of the financial district, serving clients who trusted the firm with their wealth. The SEC’s findings expose vulnerabilities in oversight and compliance that can persist even at well-regarded firms, emphasizing the need for investors to scrutinize their advisors’ actions and seek legal advice if misconduct is suspected.

How Securities Arbitration Can Help

If you invested with Momentum Advisors or suspect similar misconduct by your financial advisor, securities arbitration or litigation may be your best option for seeking justice. Unlike class-action lawsuits, individualized claims often lead to faster resolutions and tailored recoveries. At Iorio Law PLLC, our New York-based securities arbitration and litigation attorneys have extensive experience representing investors against brokerage firms and registered investment advisors.

Why Choose Iorio Law PLLC?

As a boutique law firm focused on securities arbitration and litigation, Iorio Law PLLC combines deep industry knowledge with personalized client service. We understand the complexities of SEC enforcement actions and the tactics advisors use to obscure misconduct. Whether you’re an individual investor or part of an institutional fund affected by Momentum Advisors’ actions, we’re prepared to fight for your rights.

Our attorneys have successfully recovered millions for clients harmed by advisor fraud, negligence, and compliance failures. We offer free consultations to assess your case and provide clear guidance on your options. Based in New York, we’re uniquely positioned to handle claims against local firms like Momentum Advisors, leveraging our proximity and expertise to your advantage.

Take Action Today

The SEC’s settlement with Momentum Advisors, Boomer, and Hawkins is a wake-up call for investors. If you’ve suffered losses due to advisor misconduct, don’t wait to explore your legal options. Contact Iorio Law PLLC today for a free consultation.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form