Colorado Division of Securities
Quarterly Industry Newsletter
February 2025
Division Announces 2025 Examination Priorities
The Division's 2025 investment adviser examination priorities are available for review. This year, staff are highlighting commonly identified and/or high risk examination deficiencies that the staff plans to focus on in 2025. Investment advisers can use the annual examination priority release to improve firm compliance and avoid common deficiencies.
The Division reminds all firms that they are required to maintain books and records, and upon request of the Division staff, are expected to produce them in a timely manner for review.
View the 2025 Priorities.
Live IAR CE Courses on March 12, 2025
Great news! More than 90% of investment adviser representatives licensed in Colorado completed their 2024 continuing education requirements.
In 2024, the Division became one of the first states to offer an in-person investment adviser
representative continuing education (IAR CE) course, Preparing For Launch: Your ADV Filing for Colorado Investment Advisers. Due to popular demand, the Division is hosting an additional session of this two-credit products and practice course. On the same day, the Division will also debut a new one-credit ethics and professional responsibility course, 2025 Investment Adviser Examination Priorities. This course will help prepare IARs for upcoming examinations and provide an in-depth analysis of common deficiencies and suggest ways to avoid them.
Join us on March 12, 2025, from 8:30 a.m.-12:30 p.m. at the Department of Regulatory Agencies office in Denver to earn credit for one or both courses. Please note that if you earned credit for the first course, you can’t earn credit for the same course twice. If you plan to attend both courses, please register for each class separately. Space is limited and based on a first-come, first-served basis. If you can't attend these courses, stay tuned for online versions. Visit the Division's website for more information about IAR CE requirements and register for upcoming courses below.
Learn More and Register for the Courses.
Issuers and Filers: Changes to EFD
Effective January 2025, the North American Securities Administrators Association (NASAA) made changes to the electronic filing depository (EFD). The changes include migration to the commercial cloud, a new system URL and new system support contact information. The features and functionalities of the migrated EFD will be similar to those of the previous system. Here are a few details to note:
- New URL: The new URL is nasaaefd.org. All filings and payments need to be made at this new URL.
- New Support Contacts: EFD support has a new phone number and email address. Call 1-800-378-5007 or email support@nasaaefd.org for assistance.
- Username and Passwords: Users will maintain the same credentials and don’t need to create new accounts.
If you have additional questions, please visit NASAA’s EFD resources page.
Enforcement Update
Sanctions Against Licensees
Edward D. Jones & Co., L/P (CRD #250)
- January 21, 2025 – Ordered to pay the State of Colorado $320,000. A multistate settlement alleged Respondents had gaps in supervisory procedures related to the supervision of customers moving from brokerage to advisory accounts
- Date – January 17, 2025 – Ordered to pay $106 million in remediation to investors. A multistate settlement alleged that Vanguard failed to supervise certain registered persons and disclose potential tax consequences to investors following a change in investment minimums for certain target date retirement funds.
Global Wealth LLC; James Palumbo (CRD #2623916)
- December 3, 2024 – Restriction on licenses and respondents are required to retain a compliance consultant approved by the Division for two years and issue full refunds to overcharged clients. Staff alleged that Respondents failed to verify that fee calculations by third-party software were accurate, which led to overcharges of client fees.
Mullins Investment Management, Inc.; Michael Mullins (CRD #114466 )
- November 23, 2024 – Suspension of licenses per the issuance of an Initial Decision by the hearing panel of the Colorado Securities Board. Staff alleged that Respondents failed to provide records and documents requested for a 2023 examination and didn't disclose a 2021 consent order with the Division on an updated Form ADV in 2024.
Visit our Sanctions Against Licensees page for additional information on these cases and others.
Other Enforcement Actions
- November 7, 2024 – Colorado Securities Commissioner Tung Chan filed civil fraud charges, a motion for a temporary restraining order (TRO motion) and an asset freeze against Michael Graham and associated entities based on allegations of a real estate investment scheme. The complaint alleges that Graham sold fraudulent investments meant to benefit economically distressed communities and used the funds for personal purposes.
Market4Caster, LLC; Eric Gemelli
- November 6, 2024 – Colorado Securities Commissioner Tung Chan filed civil fraud charges against Market4Caster, LLC and owner Eric Gemelli for misleading hundreds of Colorado investors. Gemelli allegedly sold more than $3 million in securities to Colorado investors from 2016 to 2022 and used investor funds for personal expenses.
Visit our Enforcement Action Table for additional information on these cases and others.
Division Hiring Lead Examiner
Are you interested in making a difference by protecting Coloradans from securities fraud? The Division is looking for a Lead Securities Examiner to join our team!
As part of the Division’s Examination Section, the purpose of the Lead position is to be the investment adviser subject matter expert and lead a training program for new field examiners who will be conducting investment adviser examinations. This position closes on February 14, 2025. Learn more and apply here.
Visit our careers page to stay up to date with current job openings. Interested candidates can email dora_SecuritiesWebsite@state.co.us with questions.