SEC charges Cetera Advisors with defrauding clients
According to reports, the Securities and Exchange Commission Thursday charged Cetera Advisors with breaching its fiduciary duty and defrauding its retail advisory clients in connection with the sales of mutual funds.
The SEC alleged that the firm failed to disclose conflicts of interest related to its receipt of undisclosed compensation.
According to the SEC’s complaint, from at least September 2012 through December 2016, Cetera sold clients mutual fund share classes that charged 12b-1 fees even when it knew the clients were eligible to invest in lower-cost shares of the same funds.
Finally, the SEC alleges that Cetera Advisors generated over $10 million in undisclosed compensation as a result of these mutual fund charges.
The foregoing information is being provided by The White Law Group, a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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