The Securities and Exchange Commission has charged Criterion Wealth Management Insurance Services Inc., a Santa Clarita, Calif.-based registered investment adviser, with breaching its fiduciary duty and defrauding clients when it recommended investments in private real estate investment funds.
The firm’s then co-owners, Robert Gravette and Mark MacArthur, also were charged.
The SEC’s complaint alleges that from 2014 to 2017, the defendants recommended that their advisory clients invest more than $16 million in four private real estate investment funds without disclosing that the fund managers had paid them more than $1 million, which was on top of fees that defendants were charging clients directly.
The complaint also alleges the defendants were incentivized to keep their clients invested in the funds, rather than allocate their capital elsewhere, because the additional side compensation was recurring and depended on Criterion’s clients remaining invested. For two of the funds, this undisclosed compensation arrangement resulted in reduced investment returns for the defendants' advisory clients.
The complaint seeks permanent injunctions from future violations of these provisions, disgorgement and prejudgment interest, and civil penalties from all defendants.
As SECURE 2.0 and state mandates drive micro 401(k) plan adoption, advisors are set to play a bigger role in helping small businesses navigate retirement solutions.
More than three-fifths of surveyed advisors see generative AI as an efficiency booster, though many are still concerned about data privacy and lack of tech integration.
The new offerings, including managed options on Franklin's canvas platform, come as managed account assets surge in the US to hit $13.7 trillion.
Meanwhile, Raymond James bolstered its employee advisor arm with an industry veteran who previously oversaw $750 million at Stifel.
Staffing shortfalls, new policies, and increased demand for clarity create potential speed bumps for tax planning and compliance.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
