Modern Portfolio Management Inc

Allegations: MYLER PROVIDED INVESTMENT ADVICE TO PERSONS IN FLORIDA FROM NOVEMBER 26, 2013 THROUGH MARCH 26, 2015, BUT HE WAS NOT REGISTERED AS AN INVESTMENT ADVISER REPRESENTATIVE BECAUSE A FORM U4 HAD NOT BEEN FILED FOR HIM UNTIL MARCH 2015 DUE TO COMMUNICATION AND/OR CLERICAL ERRORS BETWEEN HIS EMPLOYING FIRM AND ITS COMPLIANCE CONSULTANT. Status: Final Sanction Detail: $5,000 MONETARY FINE PAID BY REPRESENTATIVE ON 6/12/2015. Summary: I ACKNOWLEDGE MY RESPONSIBILITY TO REGISTER AS AN INVESTMENT ADVISER REPRESENTATIVE. IN GOOD FAITH, I BELIEVED THE NATIONALLY KNOWN CONSULTING FIRM HIRED BY MY INVESTMENT ADVISORY FIRM TO PERFORM ALL OF THE FIRM'S IARD FILINGS HAD COMPLETED THE REGISTRATION PROCESS. THEY WERE SUPPOSED TO COMPLETE THE REGISTRATION AND, IN FACT, HAD DELIVERED TO ME A HARD COPY OF THE COMPLETED U4 WHICH I UNDERSTOOD TO MEAN THAT THESE HAD BEEN PROPERLY FILED. THEIR FAILURE TO COMPLETE THE REGISTRATION PROCESS LED TO THIS UNFORTUNATE MATTER.

Allegations: ON OCTOBER 23, 2013 THE US SECURITIES AND EXCHANGE COMMISSION ("SEC") ENTERED ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS AGAINST MPM, G. THOMAS DAMASCO II, AND BRYAN F OHM. MPM, MR. DAMASCO AND MR. OHM AGREED TO SETTLE THE PROCEEDINGS WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS. THE SEC DETERMINED THAT MPM FAILED TO CORRECT VIOLATIONS THAT HAD FIRST BEEN NOTED BY THE SEC IN A 2008 EXAMINATION AND, DESPITE MPM'S ASSURANCES THAT THEY WOULD BE CORRECTED, WERE NOT SUFFICIENTLY CORRECTED AT THE TIME OF ANOTHER EXAMINATION IN 2011. SPECIFICALLY, THE SEC MAINTAINED THAT AT THE TIME OF THE 2008 REVIEW MPM FAILED TO CONDUCT A REQUIRED ANNUAL COMPLIANCE PROGRAM REVIEW IN 2006, FAILED TO CORRECT STATEMENTS ON ITS WEBSITE CLAIMING EXCLUSIVE ACCESS TO THE MUTUAL FUNDS OFFERED BY DIMENSIONAL FUND ADVISORS, AND PROVIDED PERFORMANCE ADVERTISEMENTS THAT FAILED TO FOLLOW MPM'S OWN POLICIES AND PROCEDURES AND THAT PROVIDED MODEL RESULTS THAT DID NOT DEDUCT ADVISORY FEES. UPON EXAMINING MPM IN 2011, THE SEC DETERMINED THAT MPM DID NOT COMPLETE AN ANNUAL COMPLIANCE PROGRAM REVIEW IN 2009 AND CONTINUED TO MAKE MISLEADING STATEMENTS REGARDING ACCESS TO THE DFA FUNDS. IN ADDITION, THE SEC DETERMINED THAT MPM HAD REPORTED ON ITS WEBSITE THAT IT HAD OVER $600 MILLION "IN ASSETS" WHEN MPM DIRECTLY MANAGED LESS THAN $325 MILLION IN CLIENT ASSETS. THE SEC DETERMINED THAT MR. DAMASCO AND MR. OHM AIDED AND ABETTED THESE VIOLATIONS Status: Final Sanction Detail: ALL RESPONDENTS WERE REQUIRED TO PAY HALF OF THE PENALTY WITHIN 10 DAYS OF THE ORDER AND THE REMAINING HALF WITHIN 180 DAYS OF THE ORDER. Summary: TO SETTLE THESE PROCEEDINGS, MR. DAMASCO AND MR. OHM EACH AGREED TO TAKE 30 HOURS OF COMPLIANCE TRAINING BEFORE NOVEMBER 2014. MR. DAMASCO AND MR. OHM WERE ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING FUTURE VIOLATIONS, WERE CENSURED, AND WERE FINED $50,000 EACH. MPM AGREED TO DESIGNATE SOMEONE OTHER THAN MR. DAMASCO OR MR. OHM AS CHIEF COMPLIANCE OFFICER AND TO CONTINUE TO WORK WITH AN INDEPENDENT COMPLIANCE CONSULTING FIRM FOR THREE YEARS. MPM WAS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING FUTURE VIOLATIONS, WAS CENSURED, AND WAS FINED $75,000.