UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-76432/IA Release 4262/Investment Company Act Release 31900/November 12, 2015: The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 21C of the Securities Exchange Act of 1934 (Exchange Act), Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 (Advisers Act), and Section 9(b) of the Investment Company Act of 1940 (Investment Company Act) against Metis Wealth Advisors, LLC and Juan R. Montermoso. Shortly after Montermoso formed the firm, Montermoso persuaded one of his clients at his previous firm, Client 1, to transfer her account to the firm so that he could "manage the liquidations after the transfer". He omitted to inform her that she could instruct her brokerage firm-the one Montermoso had recently left-to sell the securities from her account and remit the sale proceeds to her bank account. Montermoso assured Client 1 that the securities in her account would be liquidated and the sale proceeds transferred to her bank account, all within a few days of the account being transferred to the firm. Montermoso failed to liquidate the securities when ordered to do so and the value of the account continued to decline due to the decline in value of underlying investments. Montermoso did not complete the sales of the securities until August 2011, after which $5,812.95 remained in the account. Montermoso ordered the liquidation of the securities in order to draw the remaining funds, which he deemed to be an investment advisory fee and transfer them to his personal account. He then instructed the broker-dealer to close the account. If Montermoso had liquidated Client 1's account in September 2010, when ordered to do so, he would not have been entitled to this fee, and the client would have received the full balance of her account at that time. Montermoso omitted to inform his clients that the firm's registration had lapsed, and he continued to maintain his advisory relationship with clients. Furthermore, in November 2011, FINRA barred Montermoso and he omitted to inform his clients of the FINRA bar. During this period, Montermoso continued to advise a client, Client 2, a retired widow. Client 2's portfolio value had diminished to the point that her assets could not generate the cash for distributions. Rather than informing Client 2 that she could not afford the distributions, in September 2010 Montermoso began wiring her cash each month from his personal bank account while leading her to believe that her own assets were the source of the distributions. By July 2012, Client 2's two brokerage accounts held assets worth $25,000 and $67,000, respectively. At that time, Montermoso communicated to her that he could afford to take additional cash over and her usual $5000 monthly withdrawal. In the same communication, Montermoso told Client 2 that she had another brokerage account worth $271,000, as well as a bond fund worth $68,000. Neither the brokerage account nor the bond fund existed. Montermoso created a phantom brokerage account in the client's name. He did so by providing her with an Automated Customer Account Transfer Service ("ACATS") form for the brokerage firm to which her holdings were ostensibly being transferred, fabricating account statements and periodically emailing them to her, as well as emailing her regarding the amount and nature of the nonexistent holdings. As a result of the conduct described above, Montermoso willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and willfully violated Sections 206(1) and 206(2) of the Advisers Act. Montermoso also willfully aided and abetted and caused his firm's violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act.

Order

Bar (Permanent)

See comments

Indefinite

11/12/2015

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$65,000.00

Disgorgement

$5,812.95

Monetary Penalty other than Fines

$677.97

Prohibition

FINRA

RESPONDENT JUAN MONTERMOSO FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION.

LETTER

Bar (Permanent)

All Capacities

Indefinite

11/22/2011

PURSUANT TO FINRA RULE 9552(H) AND IN ACCORDANCE WITH FINRA'S NOTICE OF SUSPENSION AND SUSPENSION FROM ASSOCIATION LETTERS DATED AUGUST 19, 2011, AND SEPTEMBER 12, 2011, RESPECTIVELY, ON NOVEMBER 22, 2011, MONTERMOSO IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. RESPONDENT FAILED TO REQUEST TERMINATION OF HIS SUSPENSION WITHIN THREE MONTHS OF THE DATE OF THE NOTICE OF INTENT TO SUSPEND; THEREFORE, HE IS AUTOMATICALLY BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.