SEC: Firm misused customers’ money

A Newport Beach man was named in a federal injunction against a Culver City investment firm that allegedly used investors’ money to trade stocks.

William C. Tak, 43, Heath M. Biddlecome, 41, of Carpenteria, and California Wealth Management Group and Homestead Properties, L.P. were ordered to stop doing business. Together, the Securities and Exchange Commission claims, they used at least $4.5 million of customers’ money to day trade.

The injunction, a temporary restraining order against Tak and Biddlecome, freezes the assets of their businesses and prohibits them from destroying documents. It was granted in federal court Nov. 16.

The men’s alleged day-trading gave their customers mixed results and at times decreased company accounts’ value by $1.9 million, authorities claim. Homestead suffered losses for two years, according to the claim.

— Joseph Serna