According to a press release published on August 25, 2016, the Securities and Exchange Commission (SEC) has “announced penalties against 13 investment advisory firms found to have violated securities laws by spreading the false claims made by an investment management firm about its flagship product.” The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints involving the following advisory firms:
Congress Wealth Management
Constellation Wealth Advisors
Executive Monetary Management
Ladenburg Thalmann Asset Management
Prospera Financial Services
Risk Paradigm Group
Schneider Downs Wealth Management Advisors
Shamrock Asset Management
According to the SEC, an investigation found that these firms “accepted and negligently relied upon claims by F-Squared Investments that its AlphaSector strategy for investing in exchange-traded funds (ETFs) had outperformed the S&P Index for several years,” recycling these claims in recommendations to its investors without taking steps to verify the advertised claims. F-Squared has admitted to the SEC that “what was purportedly its real, historical track record was only back-tested performance that turned out to be substantially inflated.” The firms have been issued penalties ranging from $100,000 to $500,000.
Andrew J. Ceresney, Director of the SEC Enforcement Division, said in a statement: “When an investment adviser echoes another firm’s performance claims in its own advertisements, it must verify the information first rather than merely accept it as fact… These advisers negligently passed many of F-Squared’s claims onto their own clients, who were consequently relying upon false and misleading information when making investment decisions.”
According to “Anthony S. Kelly, Co-Chief of the SEC Enforcement Division’s Asset Management Unit”: “The Asset Management Unit continues to investigate and pursue similar enforcement actions against other advisers that potentially misled investors and others with advertisements containing F-Squared’s false historical performance data.”
The firms in question, while not admitting to or denying the SEC’s findings, have consented to the entry of the findings.
If you have complaints regarding AssetMark, BB&T Securities, Banyan Partners, Congress Wealth Management, Constellation Wealth Advisors, Executive Monetary Management, HT Partners, Hilliard Lyons, Ladenburg Thalmann Asset Management, Prospera Financial Services, Risk Paradigm Group, Schneider Downs Wealth Management Advisors, or Shamrock Asset Management, you may be entitled to a recovery. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency: we only receive payment if and when you recover money. You might have a limited time to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.