Federal court finds RIA guilty of fraud


In a case involving charges of undisclosed compensation brought by the Securities and Exchange Commission, jurors in a Connecticut federal court returned a guilty verdict against an RIA firm and its owner.

The jury found that Westport Capital Markets, a registered investment adviser and its owner, Christopher E. McClure, defrauded clients by “repeatedly purchasing securities that generated significant undisclosed compensation, enriching themselves at their clients’ expense,” the SEC said in a release.

“Investment advisers cannot mislead their clients about conflicts of interest,” said Adam Aderton, co-chief of the SEC’s asset management unit.

Specifically, the trial determined that the “defendants acted intentionally, knowingly, or recklessly,” according to the release.

[More: ]

Written by Investors Wallets

Vanguard’s $50 billion woman outperformed amid bond market chaos

A crisis is a terrible thing to waste