Charges filed against Palm Desert based Rumbaugh Financial

The Securities and Exchange Commission has charged Rumbaugh Financial and CEO Craig Rumbaugh with defrauding clients by deceit. Rumbaugh Financial is located in Palm Desert at The Gardens on El Paseo.

The SEC accuses Rumbaugh of hiding the fact that he intended to personally profit from certain investments.

In 2018 the SEC filed an emergency civil injunctive action against companies operated by Susan Werth. Rumbaugh had eight clients invest $3 million dollars in companies operated by Susan Werth in 2015 and 2016.

Over $600,000 was lost and Rumbaugh failed to inform clients that he would be taking 5% commission on the investments.

Rumbaugh also misled clients as to how much interest they would get back telling them they would get 5 to 10 % but in reality, getting 30% or more.

Rumbaugh is accused of intending to secretly keep the difference.

The SEC seeks to get the gains returned plus interest and penalties.