El Capitan Advisors SEC Judgment means serious consequences for both a company and its leader. The Securities and Exchange Commission, or SEC, got final judgments against El Capitan Advisors Inc.

and Andrew Daniel Nash on June 4, 2025 (SEC Complaint, Central District of California). These judgments came after Nash misappropriated $15.3 million from a clientâs account to buy a house in Santa Barbara with $4.6 million taken directly from those funds.

He created fake account statements to hide this theft and used clients’ money for his personal bills.

El Capitan also said it managed over $3.6 billion in assets under management (AUM) in 2022 and even claimed $7.4 billion in 2023; the real numbers were less than $62 million by March 2022, growing only slightly to under $85 million at the end of that same year.

In reality, El Capitan handled just about one percent of what they reported.

The court ordered permanent bans stopping Nash from working as an advisor or broker again while barring El Capitan from securities activities forevermore. Both parties agreed to pay back millions gained through their actions plus prejudgment interest of more than two and a half million dollars combined but did not have to admit guilt.

This case highlights why investors need clear information before making big decisions about who manages our money or how much is really at stake. More facts come out as we explore each part of this story next.

Key Takeaways

Table of Contents

The SEC issued final judgments against El Capitan Advisors Inc. and Andrew Daniel Nash for misappropriating $15.3 million from a client, violating their fiduciary duties (SEC Complaint, Central District of California, June 4, 2025).
Nash used stolen funds to buy a $4.6 million home in Santa Barbara and hid the theft by creating fake account statements.
El Capitan Advisors falsely reported Assets Under Management (AUM) as over $3.6 billion in 2022 and more than $7.4 billion in 2023; real AUM was less than $62 million and below $85 million for those years.
The court ordered permanent injunctions: Nash is banned as an investment advisor or broker; both he and El Capitan must stop all securities work.
Financial penalties include disgorgement of $4.6 million plus interest from Nash and over $10.7 million plus interest from El Capitan Advisors to recover investor losses.

SEC Final Judgments Against El Capitan Advisors Inc. and Andrew Daniel Nash

The SEC issued final judgments against El Capitan Advisors Inc. and Andrew Daniel Nash for serious violations. They misappropriated $15.3 million from a client while breaching their fiduciary duties, which raises major concerns about trust in investment practices.

Misappropriation of $15.3 million from a client

Nash and El Capitan Advisors took $15.3 million from a client without permission. Nash moved over $15 million out of the client’s accounts, using some of it to buy a $4.6 million home in Santa Barbara.

The SEC filed its complaint on June 4, 2025, in the Central District of California.

We see this as clear financial misconduct and fraud by an investment advisor we expect to act with honesty. The case shows how embezzlement and misappropriation can harm investors who trust their advisors with large sums.

Misappropriating millions in client funds for personal gain is serious securities fraud, stated an SEC spokesperson during the legal judgment announcement.

Regulatory action like this aims to protect us as investors from similar risks involving our own assets.

Charges of breaching fiduciary duties

We face serious concerns over charges of breaching fiduciary duties by Andrew Daniel Nash and El Capitan Advisors Inc. As investment advisors, they held a duty to act in the best interests of their client.

Instead, Nash transferred $15.3 million from a clientâs funds for his personal use. He spent part of this money on a $4.6 million home and hid these actions by creating fake account statements.

Their financial misconduct breaks the trust we expect from those managing investments. The SEC found clear evidence of embezzlement and fraud. Courts issued final judgments after confirming violations tied to fiduciary responsibility and accountability for investor assets.

Such securities violations highlight why ethics must guide all financial advisorsâ actions with client funds at every step.

Details of the SEC Complaint

Andrew Daniel Nash provided investment management services while misappropriating funds. To hide his actions, he created fake account statements and concealed the theft from clients.

Investment management services provided by Nash

Nash gave investment management advice to clients who wanted exposure to exchange-traded funds, mutual funds, bonds, and other financial options. We saw a standard fee structure of 1% per year based on assets under management.

Actual AUM numbers fell below $62 million in March 2022 and did not reach $85 million by December 2022.

While providing these asset management services, Nash misappropriated $15.3 million from client accounts. This case highlights serious gaps in regulatory compliance and oversight of investment advisory activities.

The SEC charged that Nash abused his fiduciary duties while acting as an adviser overseeing client assets.

We need to stay aware of possible fraudulent activity even when financial professionals present themselves as trustworthy managers or advisors.

Fabrication of account statements to conceal theft

Nash created false account statements to give the impression that our client’s money remained safe with financial institutions. These statements misled us into thinking everything was in order while hiding the theft of $15.3 million.

This scheme disguised unauthorized fund transfers made for personal expenses. The SEC identified this act as a clear breach of fiduciary duty, marking it as serious financial misconduct deserving accountability.

As we examine Nashâs actions, we turn now to the next critical point regarding his filing practices and misrepresentation of assets under management.

Filing of Form ADV and Misrepresentation of AUM

El Capitan Advisors filed Form ADV with incorrect figures on their assets under management (AUM). They inflated these numbers to mislead clients and regulators, creating a false sense of security.

Overstating the firm’s AUM in filings with the SEC

In 2022, we noticed that El Capitan Advisors falsely reported an Assets Under Management (AUM) of over $3.6 billion in their SEC filings. This inflated figure misled investors about the firm’s actual financial health.

The following year’s filing claimed a regulatory AUM of more than $7.4 billion, again far from reality. Actual figures showed only around 1.7% and 1.1% of the claimed amounts for those years.

The SEC took action under the Investment Advisers Act of 1940 due to this misrepresentation of AUM. They highlighted gross discrepancies in financial reporting and raised concerns over fraudulent practices at El Capitan Advisors Inc.

These actions put significant pressure on the firm to maintain accurate disclosures moving forward.

Financial records indicating discrepancy in reported AUM

Overstating the firm’s AUM in filings with the SEC led to significant discrepancies. Financial records showed that El Capitan managed less than $62 million in March 2022. By December 31, 2022, this amount remained below $85 million.

These figures reveal a severe misrepresentation in their regulatory filings. The SEC’s findings highlighted the importance of accurate reporting standards for investors like us. Distorted numbers can mislead and create distrust in investment management practices.

Final Judgments and Orders

The SEC issued permanent injunctions against both Nash and El Capitan Advisors. They ordered the disgorgement of the stolen funds along with interest, placing serious penalties on those involved.

Permanent injunctions against Nash and El Capitan

The SEC secured permanent injunctions against Andrew Daniel Nash and El Capitan Advisors. Nash cannot act as an investment advisor or broker anymore. He must stop all advisory activities immediately.

El Capitan is also permanently prohibited from any securities-related work. Both parties face strict orders to cease their unlawful practices based on the final judgment. This enforcement action aims to protect investors like us from potential fraud and misconduct in the future.

Disgorgement of ill-gotten gains and payment of prejudgment interest

Nash must disgorge $4.6 million, along with prejudgment interest of $791,153.48. El Capitan has a larger amount to return; it must pay back $10.7 million and an additional $1,840,291.82 in prejudgment interest.

These judgments enforce the recovery of misappropriated funds from both Nash and El Capitan Advisors Inc.

Financial penalties reflect the seriousness of their misconduct. We see clear measures aimed at asset recovery and financial restitution for affected investors.

Conclusion

We learned that the SEC took strong action against El Capitan Advisors and Andrew Daniel Nash. They misappropriated $15.3 million, violating their fiduciary duties to clients. Nash even went so far as to create false account statements to hide his theft.

This case shows the importance of regulatory compliance in investment advisory services. How can we ensure our investments stay safe? Staying informed helps us avoid pitfalls like this one.

Let’s prioritize transparency and ethical practices in our financial decisions moving forward.

References

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SEC Final Judgment Against El Capitan Advisors: Details Revealed