In like manner, the SEC files charges against former deVere USA CEO, Benjamin Alderson, and former manager, Bradley Hamilton. With regard to this action, the SEC’s complaint alleges that Alderson and Hamilton mislead clients and prospective clients about the benefits of pension transfers while concealing material conflicts of interest. Specifically, the material conflict includes the considerable remuneration for Alderson and Hamilton, personally.
Obligation to Disclose
“Investment advisers have an obligation to disclose direct and indirect financial incentives,” said Marc P. Berger, Director of the SEC’s New York Regional Office. “deVere USA brushed aside this duty while advising retail investors about their retirement assets, and today’s settlement will result in a Fair Fund distribution to deVere USA’s retail clients who were deprived of important information.”
Without admitting or denying the SEC’s findings, deVere USA consents to the SEC’s order. The order indicates the firm violates the Investment Advisers Act of 1940, including the antifraud provisions. In the end, the SEC imposes remedies that include an $8,000,000 penalty and engaging an independent compliance consultant. The SEC’s complaint against Alderson and Hamilton alleges that they violated the Investment Advisers Act and seeks an injunction, disgorgement plus interest, and civil money penalties.
