SEC Cracks Down on Unregistered Broker Activity for Ranieri Partners

The SEC found that respondent Stephens solicited investors as a hired consultant for Ranieri Partners and was paid fees , although not registered as a broker. His longtime friend respondent Phillips was a senior managing director who headed up capital raising efforts for Ranieri Partners, and responsible for overseeing Stephens’ activities as a purported “finder” who would merely make initial introductions to potential investors. However, Stephens’ role allegedly went far beyond that of a finder, including consistent communication with prospective investors and their advisors and providing them with key investment documentation that he received from Ranieri Partners. People acting as brokers must be registered with the SEC; Stephens was charged with violating this rule and the other respondents with aiding and abetting.