Richard Diver, from New Jersey, engaged in an illicit scheme between 2011 and 2018 to steal around $6m (£4.6m, €5.3m) from his employer, an investment adviser.
His role in the advisory firm included managing the company’s payroll and clients’ bills; through which he, allegedly, inflated his own salary.
According to the complaint received by the SEC, he also defrauded some 300 investors by over-billing them for around $750,000 to generate additional revenue.
When he was confronted by the company’s chief executive in December 2018, he confessed.
“As alleged, Diver lined his own pockets by stealing from hundreds of advisory clients, until his scheme was exposed by an investor who asked the right questions about charged fees,” said Marc Berger, director of the SEC’s New York regional office.
“When the scheme came to light, we took swift action to ensure that there was no further investor harm.”
The SEC has also charged Diver with “aiding and abetting the investment adviser’s violations of the antifraud provisions”.
The US regulator is now seeking a judgement ordering a permanent ban on Diver, as well as a disgorgement, prejudgement interest and civil monetary penalties.
The case was also referred to the US Attorney’s office in New York, who has added criminal charges to Diver’s case.