Court says fraud will cost Navellier more than $31 million

This article has been corrected to show that the disgorgement, fines and interest will total more than $31 million.

The Securities and Exchange Commission has obtained a final judgment and more than $31 million in disgorgement, fines and interest in its action against Nevada-based investment adviser Navellier & Associates and its founder and chief investment officer, Louis Navellier of Florida.

In August 2017, the commission charged the defendants in federal district court in Massachusetts, alleging that they breached their fiduciary duties and defrauded their advisory clients and prospective clients through the use of marketing materials that included false and misleading statements regarding the past performance of the firm's Vireo AlphaSector investment strategies.

In February, the court granted partial summary judgment in favor of the SEC. The court held that the firm and Navellier violated the antifraud provisions of the Advisers Act because while they knew about misleading statements in their marketing materials and their own inadequate due diligence, they failed to inform their clients and continued to sell the strategies.