On August 6, 2025, the SEC obtained a final judgment against James Burleson, who was the managing partner of the investment advisory firm Burleson & Company, LLC, of engaging in a “cherry-picking” scheme.
On November 21, 2024, the SEC filed a complaint alleging that, from August 2020 to October 2022, Burleson used his firm’s omnibus trading account to disproportionately allocate profitable option trades to his personal account and disproportionately allocate unprofitable options trades to his clients’ accounts.
In order to settle the charges, Burleson consented to a final judgment including an injunction to prevent him from repeating such acts. The acts are a violation federal securities law.
As to the monetary portion, Burleson will disgorge $1,837,700 and pay prejudgment interest in the amount of $216,590. Burleson will also submit to a civil penalty in the amount of $230,464. As part of the settlement, Burleson also agreed to settle the administrative proceeding the SEC initiated against him. This results in a bar from association with any brokerage firm or investment adviser. He has the right to apply for reentry after five years.
Jeffrey Pederson is an attorney who represents investors victimized by such abuses. Please contact him with questions or concerns over cherry picking or other forms of investment fraud.
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