CARY URICH – Former UNITED PLANNERS Adviser Accused of Unsuitable Leveraged ETF Investments – May Recover Losses
CARY URICH – Former UNITED PLANNERS Adviser Accused of Unsuitable Leveraged ETF Investments.
A former UNITED PLANNERS investment adviser representative, Cary Urich, faces SEC allegations involving unsuitable investments in leveraged and inverse exchange-traded funds (ETFs) that resulted in substantial losses for elderly investors.
Call 800-500-4442 if you believe your financial adviser recommended unsuitable investments or placed excessive amounts of your retirement savings into high-risk securities.
CARY EDWARD URICH
SEC Alleges Unsuitable Leveraged ETF Investments
On October 29, 2026, the Securities and Exchange Commission (SEC) filed a civil enforcement action against Cary Edward Urich in the U.S. District Court for the District of South Carolina. The case is SEC v. Cary Edward Urich, Case No. 6:26-cv-05267-JDA.
According to the SEC’s complaint, between April 2020 and November 2023, Urich used his discretionary authority over the investment accounts of 54 clients, most of whom were elderly, to invest substantial portions of their savings and retirement funds in leveraged and inverse ETFs.
The SEC alleges these investments were inconsistent with the clients’ investment objectives, financial circumstances, and risk tolerances. The clients generally identified their investment objectives as growth or growth and income, rather than speculation.
The five ETFs identified in the SEC complaint were:
- SDS: ProShares UltraShort S&P500.
- DXD: ProShares UltraShort Dow30.
- TWM: ProShares UltraShort Russell2000.
- QID: ProShares UltraShort QQQ.
- UVXY: ProShares Ultra VIX Short-Term Futures ETF.
These products use leverage or inverse exposure to seek amplified or opposite daily returns. They can be particularly dangerous when held for extended periods because daily compounding can cause their performance to diverge significantly from the underlying index or benchmark.
CARY URICH – Former UNITED PLANNERS Adviser Accused of Unsuitable Leveraged ETF Investments – May Recover Losses
Investors Allegedly Lost Approximately 70%
One of the most troubling allegations concerns the length of time Urich held these investments.
The SEC alleges that the funds were held in client accounts for an average of 798 days, despite prospectus warnings and regulatory guidance cautioning investors against holding these products for periods longer than one day.
The complaint alleges that the leveraged and inverse ETFs represented 72% of the market value of the client accounts at the end of 2020, 63% at the end of 2021, and 58% at the end of 2022.
The SEC provides several examples of the losses suffered by clients:
- 93-year-old retired investor: Approximately $1,247,000 invested in the ETFs, followed by losses of approximately $746,000, or 60%.
- 76-year-old retired investor: Approximately $351,000 invested, followed by losses of approximately $235,000, or 67%.
- 81-year-old retired investor: Approximately $462,000 invested, followed by losses of approximately $310,000, or 67%.
According to the SEC, the 54 affected clients lost approximately 70% of their investments in these products, on average.
Failure to Disclose Investment Risks
The SEC further alleges that Urich knew about the risks associated with holding leveraged and inverse ETFs for extended periods.
According to the complaint, Urich had reviewed the prospectuses and regulatory alerts warning that these products were designed to achieve their investment objectives on a daily basis. The documents warned that investors could experience substantial losses, even when the underlying index moved in a favorable direction over a longer period.
Despite this knowledge, the SEC alleges that Urich failed to adequately disclose the risks, negative historical returns, and extended holding periods to his clients.
The SEC charged Urich with violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, which address fraudulent conduct and fiduciary obligations by investment advisers.
What Investors Should Know
This case illustrates the risks of allowing an investment adviser to concentrate retirement savings in complex leveraged investments without adequately considering the investor’s financial circumstances, investment objectives, and ability to withstand losses.
Investors who purchased leveraged or inverse ETFs through Urich or another financial adviser should consider whether:
- Their adviser recommended leveraged or inverse ETFs as long-term investments.
- Their retirement accounts were excessively concentrated in these products.
- The investments were consistent with their stated risk tolerance and investment objectives.
- Their adviser explained the effects of daily compounding and the risks of extended holding periods.
- The adviser disclosed the possibility of substantial losses, including the potential loss of the entire investment.
- Their adviser continued holding these investments despite significant losses or changing market conditions.
Investors who suffered losses may have legal claims against the responsible financial adviser and potentially the brokerage or investment advisory firm, depending on the facts and applicable law.
Goodman & Nekvasil, P.A. investigates claims involving unsuitable investment recommendations, excessive concentration, failure to disclose investment risks, and breaches of fiduciary duty.
Call 800-500-4442 for a free consultation and evaluation of your potential investment loss recovery claim.
Goodman & Nekvasil, P.A. is investigating brokers who may have unsuitably recommended investments to their clients.
St. Petersburg, Florida law firm Goodman & Nekvasil, P.A., has a national practice representing victimized investors. The firm continues to investigate brokerage firms that placed elderly retirees and other conservative investors in unsuitable investments.
Goodman & Nekvasil, P.A., has filed numerous cases against brokerage firms selling high-risk investments and has recovered more than $600 million dollars on behalf of victimized investors.
We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee.
If you incurred losses on your investment and would like your case evaluated by a securities attorney, please contact us.
Some of the information in this blog post was obtained from FINRA on 11/13/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.