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NC SOS

Latest Enforcement News

Cease & Desist Orders

A summary cease & desist order is issued by the Securities Division when it appears that ongoing activity violates the North Carolina Securities Act or the North Carolina Investment Advisers Act and poses the threat of irreparable harm to the investing public. The cease & desist order commands those who receive it to stop any further violations and to comply with the requirements of the securities laws. At the time of issuance of a summary order, the persons named in the order have not had the opportunity to respond to its allegations. The order notifies those persons that they may request a hearing on whether the allegations are true. If no hearing is requested, the Division will issue a final order confirming the allegations as true. A final order terminates the controversy between the parties and concludes the issues in the proceeding, unless and until it is vacated or set aside.

Criminal Enforcement
& Administrative Actions


On April 16, 2020, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order ("Order") with Ferry Capital Management, LLC ("FCM") and Paul Edward Ferry. The Order found that Respondents transacted business in North Carolina as an investment adviser and an investment adviser representative without being registered, in violation of the North Carolina Investment Advisers Act ("Act"). Pursuant to the Order, FCM and Ferry agreed to immediately cease and desist from violating any provisions of the Act and any related administrative rules; keep FCM's Form ADV updated; hire a third-party compliance auditor; attend the Securities Division's Investment Adviser Best Practices Workshop; and pay both a civil penalty and the cost of investigation. For more information, click here.

On February 18, 2020, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with Joseph M. Murtagh, Jr. and Joseph M. Murtagh, Jr. d/b/a The Source. The Order states that The Source and Murtagh violated North Carolina law during at least some of the years they transacted business in North Carolina as an investment adviser and an investment adviser representative without registering pursuant to the North Carolina Investment Advisers Act. Pursuant to the Order, The Source and Murtagh agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act or Securities Act and any related administrative rules, to pay a registration fee, to pay a civil penalty, and to pay a sum to the Investor Protection and Education Trust Fund. For more information, click here.

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