In January 2021, Sarah Helen Hancock was indicted by a Dallas County Grand Jury. She stands accused of engaging in fraud while working as an investment adviser representative and misapplying fiduciary property belonging to more than 20 different clients. The crimes allegedly occurred pursuant to a scheme that lasted more than 5 years.
The Securities Commissioner previously brought an action that revoked Hancock's registration as an investment adviser representative. The revocation was entered after the Securities Commissioner found Hancock engaged in significant misconduct - including appropriating money from clients that far exceeded her allowable annual fee. For example, according to the order, Hancock withdrew $1.6 million from a single client's account over a period of around two years - representing more than $1.5 million in excess of the fee structure.
The Securities Commissioner also found Hancock took active steps to conceal her scheme - according to the order, for example, she provided fake invoices to at least one client. The fake invoices allegedly hid her misconduct by misrepresenting the client's account balance.
The criminal case is being prosecuted by the Dallas County District Attorney's Office. It was investigated by the Enforcement Division of the Securities Board.