The SEC charged Eric Cobb, a former investment advisory representative of SeaCrest Wealth Management, Inc., with engaging in a fraudulent scheme where he allocated profitable securities trades to favored accounts and unprofitable trades to disfavored clients, a practice known as cherry-picking. The SEC’s complaint also alleged that Cobb routinely placed clients in highly volatile and risky investments that were inconsistent with their investment profiles. Investment adviser, SeaCrest, was charged with failing to implement policies and procedures designed to prevent violations of the federal securities laws and failing to reasonably supervise Cobb. This case highlights the SEC’s ongoing focus on cherry-picking violations, its willingness to enforce compliance with subpoenas, and the need for investment advisers to adopt and enforce robust controls with respect to trade allocations and suitability to avoid and promptly detect potential cherry-picking and unsuitable investments.