On April 6, 2018, the Securities and Exchange Commission (“SEC”) announced that three investment advisors, PNC Investments LLC, Securities America Advisors Inc., and Geneos Wealth Management (the “Advisors”) have settled charges with the SEC. The Advisors paid $12 million in restitution to clients harmed by the Advisor’s breach of their fiduciary duties.
The SEC found that these Advisors “violated their duty to seek best execution” by investing client assets in high cost mutual funds, when lower cost shares of the exact same funds were readily available. The SEC determined that the Advisors made these investment decisions simply for the purposes of self-enrichment.
Under the “Share Class Selection Disclosure Initiative,” the SEC is granting eligible Financial Advisors until June 2, 2018 to disclose and self-report any misconduct surrounding mutual fund purchases. The SEC’s Enforcement Division is willing to extend leniance to financial advisors, including recommending favorable settlement terms and waiving civil penalties, during this grace period granted under this Initiative.
The attorneys at Lax & Neville LLP have extensive experience in successfully prosecuting claims on behalf of customers who have suffered losses as a result of investment and securities fraud. Additionally, attorneys at Lax & Neville are experienced with employment law in the financial services industry, and dealing with regulatory bodies such as the SEC. If you are a victim of fraud, or are a Financial Advisor with a prospective regulatory issue, please contact Lax & Neville LLP today at (212) 696-1999 to schedule a consultation.