SEC charges California firms with misleading clients about markups

TCFG in Laguna Nigel marked up ticket charges 60% of the time, but told advisory clients that markups were imposed only 'in some limited instances,' the agency says.

The Securities and Exchange Commission has charged TCFG Investment Advisors, TCFG’s affiliated broker-dealer TCFG Wealth Management and Richard James Roberts, the companies’ CEO, president and managing member, with making materially false and misleading statements and omissions related to fee markups charged to TCFG’s advisory clients.

According to the SEC’s complaint, the Laguna Niguel, California-based firms and Roberts breached their fiduciary duty to advisory clients by claiming that markups were imposed only “in some limited instances” when ticket charges were instead marked up approximately 60% of the time.

The complaint seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties.

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