SEC Takes Action Against Adviser for Defrauding Retirees and Investors Nearing Retirement

On December 19, 2019, the SEC filed a complaint in federal court against a Sacramento, California-based investment advisory firm and its owner. The complaint alleged that the Registered Investment Adviser (RIA) and its owner defrauded hundreds of retail clients, most...

Fiduciary Duty Goes Well Beyond Share Class Selection

Investment advisers may have noticed the SEC’s recent Share Class Selection Disclosure Initiative and thought they had nothing to learn from the 79 enforcement actions. The reality is that even investment advisers who are not affiliated with a broker-dealer can...

RIAs Breach Their Fiduciary Duty with Improper Share Class Selection

On April 6, 2018, the SEC ordered three Registered Investment Advisers (RIAs) to pay $12 million to clients harmed by the firms’ breach of their fiduciary obligations. The RIAs had generated millions of dollars in improper fees by selecting higher-cost mutual...