SEC Charges Adviser Cary Urich Over Leveraged ETF Mismanagement

The Securities and Exchange Commission charged South Carolina-based investment adviser Cary Edward Urich on Oct. 29, 2026, for alleged breaches of fiduciary duty involving unsuitable investments in leveraged and inverse exchange-traded funds ¹. According to an agency litigation release, Urich consented to a settlement that includes a $100,000 civil penalty and a two-year suspension from associating with any investment adviser, pending court approval ¹.

In its complaint filed in the U.S. District Court for the District of South Carolina, the SEC alleged that Urich exercised discretionary authority from April 2020 through November 2023 over 54 client accounts, primarily belonging to elderly retirees ¹. During this window, Urich allegedly allocated substantial portions of client assets into complex leveraged and inverse ETFs while serving as a representative at United Planners' Financial Services of America A LP ¹. The regulator noted that fund prospectuses cautioned against maintaining holdings beyond a single trading day ¹. Despite reviewing these alerts, Urich maintained client positions in the products for an average duration of 798 days, leading to approximately 70% losses across the affected portfolio allocations ¹.

Supervisory Sanctions

The SEC stated that Urich failed to inform clients of the negative historical returns tied to the products or that his extended holding strategy contradicted formal regulatory advisories and prospectus guidelines ¹. Without admitting to the allegations, Urich agreed to permanent injunctions against future violations of the antifraud provisions under Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 ¹.

In a related administrative proceeding, the SEC instituted settled proceedings against United Planners regarding the same conduct ¹. The enforcement action highlights increased regulatory examination of complex exchange-traded products used within discretionary wealth accounts, as federal authorities reinforce compliance mandates across advisory firms holding volatile financial instruments ¹.