Phoenix, Ariz. -  The Arizona Corporation Commission ordered Arizona insurance producer Christopher Spence Cox of Tucson to pay a $10,000 administrative penalty for his role as controlling partner of an investment advisory firm that committed fraud.

As a licensed investment adviser in Arizona, Smith & Cox, LLC had a fiduciary duty to act in the best interest of its clients with full disclosure of any conflicts of interest or material facts. The Commission found, however, that Smith & Cox, LLC failed to inform investors that the firm and its sole investment adviser representative were respondents in a pending Commission securities enforcement action, which included possible revocation of their licenses. Further, the Commission found that, as a controlling partner of Smith & Cox, LLC, Mr. Cox had a duty to disclose material information to Smith & Cox, LLC clients. 

This consent order does not require Mr. Cox to pay restitution because Cox’s former advisory firm, AE Wealth Management, LLC, has paid all restitution owed to the investors as required by Commission’s Decision #78219 dated September 1, 2021.

In settling this matter, Mr. Cox neither admits nor denies the Commission’s findings and agrees to the entry of the consent order.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21104A-20-0103.