SEC v. Marlon Quan and Stewardship Investment Advisors, LLC (2014)

Judgment entered

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In October 2014 the SEC instituted follow-on administrative proceedings against hedge fund adviser Marlon Quan and Stewardship Investment Advisors, LLC after a February 2014 jury verdict that they misled investors about safeguards and Thomas Petters' defaults. Both defaulted; a January 30, 2015 initial decision, final on March 13, 2015, permanently barred Quan from the securities industry and revoked the firm's registration.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The order sets a hearing and recites the court case, in which a jury found that Quan and his firm misrepresented a "lockbox" procedure and due diligence in two hedge funds that invested in Petters promissory notes and concealed Petters' defaults. Investors lost over $221 million in the Petters Ponzi scheme.

The Petters scheme was another person's, and Quan is charged with failing to protect and inform his investors, not with operating a Ponzi scheme, so the ponzi-schemes tag the record carried has been removed. The proceeding was a follow-on to the court judgment.

Outcome. Quan and the firm did not file an answer, and Quan told the Division in a letter that he did not oppose the relief, so they were held in default and the order's allegations were treated as true. The administrative law judge's Initial Decision of Default (Release No. 741, January 30, 2015) permanently bars Quan from association with an investment adviser, broker, dealer and similar firms and revokes Stewardship's adviser registration. The Commission's notice of March 13, 2015 says no petition for review was filed and the decision became final. The decision orders no penalty or disgorgement. It relies on the federal court findings that the safeguards promised to investors were never put in place and that investors in the funds lost more than $221 million in the Petters scheme.

Timeline

1. 2014-10-30 Administrative proceeding instituted (administrative)
2. 2015-01-30 Initial decision of default: Quan barred, firm registration revoked
3. 2015-03-13 Notice that the initial decision has become final

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order
• Initial decision of default (ID-741)
• SEC notice that initial decision has become final (IA-4048)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Record added September 10, 2026. submit a correction.