SEC Barred Investment Adviser Over Misappropriated Funds
The SEC finalized an agreement to ban Clarice Saw after she was found to have stolen over $2.4 million from a client.
Updated on Sept. 22, 2026 in Financial Crime
The Securities and Exchange Commission has barred Clarice Saw from the securities industry following a settlement regarding the misappropriation of client funds. Saw, an investment adviser, previously used a power-of-attorney document to gain control of an elderly client's assets.
Why it matters
The SEC enforcement action highlights the critical importance of regulatory oversight in protecting vulnerable investors from financial abuse. This resolution permanently removes Saw from the industry to prevent further potential harm to the public.
A federal court ordered Saw to pay $1,379,319 in ill-gotten gains, interest, and penalties in April 2026. The SEC accepted the settlement offer to bar her from the industry on September 21, 2026.
The players
Clarice Saw
She is a 60-year-old investment adviser who was found to have misappropriated millions of dollars from an elderly client.
Securities and Exchange Commission
This federal agency is responsible for protecting investors and maintaining fair, orderly, and efficient financial markets.
Fusheng Jiang
He is an 87-year-old client whose bank and brokerage accounts were liquidated by his investment adviser.
Paul G. Gardephe
He is a U.S. District Judge who presided over the federal court proceedings involving the SEC and the investment adviser.
The details
Clarice Saw presented a power-of-attorney document as a health care proxy to her 87-year-old client, Fusheng Jiang, to gain access to accounts. After adding her name to the victim bank account as a joint owner, she liquidated the brokerage account to misappropriate the funds.
Timeline
The SEC filed a lawsuit against Clarice Saw in 2023.
Judge Paul G. Gardephe granted summary judgment to the SEC in 2025.
The court ordered Saw to pay $1,379,319 in April 2026.
The SEC accepted the settlement offer from Clarice Saw on September 21, 2026.
Legal Context
This case follows established federal enforcement precedents regarding the breach of fiduciary duty by financial professionals. It highlights how agencies utilize summary judgments to address clear instances of financial exploitation within the industry.
This case serves as a warning for families to regularly audit the financial accounts of elderly relatives. It emphasizes the risks associated with granting power-of-attorney documents to individuals who manage significant investment assets.
The takeaway
Investors should periodically review account ownership and access privileges to ensure personal assets are not exposed to unauthorized management. Maintaining transparency with multiple family members regarding financial decisions can provide a critical safety net against fraud.
Further reading
For more on regulatory oversight and enforcement, visit Financial Crime.
