NEW YORK Dec 19 The U.S. Commodity Futures
Trading Commission ordered a Washington area wealth management
firm to pay $800,000 on Monday in a fraud case involving the
firm's chief executive, who apparently committed suicide in
Potomac, Maryland-based Convergent Wealth Advisors was
ordered to pay the fine to settle charges that its former CEO
David Zier defrauded Convergent clients who he solicited to
invest in a private fund he managed outside of Convergent, named
Convergent Wealth Advisors did not respond to requests for
From 2007 to 2014, the CFTC found that Zier falsely told
clients ZAM was profitable and gave them fabricated performance
statements that concealed substantial losses, according to a
In October 2014, Zier was found dead at his Virginia home in
an apparent suicide just weeks after Convergent's compliance
officers began questioning him about irregularities in ZAM's
records, Barron's previously reported.
Convergent did not disclose ZAM's total losses. However, the
CFTC said that from December 2010 to Zier's death four years
later, Zier fraudulently solicited $2.9 million in investments
The CFTC held Convergent responsible for Zier's activities
because its compliance department monitored Zier's emails and
tracked ZAM's performance.
Convergent is a registered investment advisory firm managing
the assets of roughly 200 ultra wealthy client families,
according to its website.
Previously owned by City National Bank, Convergent was sold
to Pathstone Federal Street earlier this year, according to a
press release on Pathstone's website.
Pathstone did not immediately respond to requests for
(Reporting By Elizabeth Dilts; Editing by Tom Brown)