According to reports, WFG Advisors, the registered investment advisory arm of Williams Finance Group, will pay a $100,000 penalty for overcharging clients.
According to the SEC, from January 2011 through August 2013 the firm overcharged clients on real estate investment trusts and business development companies. The SEC further alleged that WFG had inadequate policies and procedures to prevent and detect overcharging.
WFG Advisors allegedly told clients in its so-called wrap account program that they’d be charged a commission to purchase interests in alternative investment products, including REITs and BDCs, but no advisory fee. Yet the firm apparently charged both.
WFG Advisors was also allegedly aware that it risked overcharging clients after a compliance consultant hired in 2011 pointed out that its advisory fees may not be accurately computed or tested.
WFG Advisors also falsely stated in forms filed with the SEC that clients participating in the wrap program would not be charged commissions for transactions in their accounts.
The foregoing information, which is publicly available, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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