--- title: "SEC Charges Adviser Cary Urich Over Leveraged ETF Mismanagement" description: "A South Carolina adviser agreed to pay $100,000 and face a two-year industry suspension after clients suffered 70% losses in leveraged and inverse ETFs." url: https://basisdesk.news/news/sec-charges-cary-urich-leveraged-etf-losses published: 2026-10-30T21:16:34.745Z modified: 2026-10-30T21:16:34.745Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [] tags: [sec, enforcement, etfs, litigation, advisers] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # SEC Charges Adviser Cary Urich Over Leveraged ETF Mismanagement A South Carolina adviser agreed to pay $100,000 and face a two-year industry suspension after clients suffered 70% losses in leveraged and inverse ETFs. ## At a glance - **What happened:** The SEC charged adviser Cary Urich on Oct. 29, 2026, for holding leveraged ETFs in client accounts for an average of 798 days, causing 70% losses. - **Why it matters:** The action signals intensified regulatory enforcement against investment advisers who bypass complex product warnings in discretionary retail portfolios. - **Who is affected:** Cary Edward Urich, 54 advisory clients, and United Planners' Financial Services of America A LP. - **What's next:** The proposed settlement and final judgment await formal approval by the U.S. District Court for the District of South Carolina. - **Status:** enforcement - **Primary source:** [Cary Edward Urich](https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26681) — SEC Litigation Releases ## Key points - Cary Urich agreed to a $100,000 penalty and a two-year investment adviser suspension to settle SEC fiduciary duty charges. - The SEC alleged Urich held leveraged and inverse ETFs for an average of 798 days in 54 accounts, despite single-day holding warnings. - Clients lost approximately 70% of their allocations in the leveraged products between April 2020 and November 2023. ## Editorial remark - **Context:** The SEC has consistently issued warnings regarding the volatility decay and rapid loss potential inherent in holding leveraged and inverse ETFs over multi-day periods. - **Impact:** Fifty-four advisory clients lost approximately 70% on these allocations, while broker-dealer United Planners faces concurrent settled administrative proceedings. - **Watch:** Approval of the proposed final judgment by the U.S. District Court for the District of South Carolina. 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]. ## FAQ **What did the SEC allege against Cary Urich?** The SEC alleged that Urich breached his fiduciary duty by allocating client savings into leveraged and inverse ETFs for an average of 798 days, disregarding product warnings against holding them longer than one day. **What are the penalties in the proposed settlement?** Subject to court approval, Urich consented to pay a $100,000 civil penalty, accept a two-year ban from associating with investment advisers, and agree to permanent antifraud injunctions. ## Sources 1. [Cary Edward Urich](https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26681) — SEC Litigation Releases, 2026-10-30 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai