SEC orders these advisory firms, broker-dealers to return over $3 million to harmed investors

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The SEC ordered the firm to pay a total of $653,072 civil monetary penalty, disgorgement, and prejudgment interest.

SEC allegations and order against Benjamin Edwards & Company

The SEC alleged that some of the firm’s brokerage representatives have a flawed understanding of complex exchange-traded products, which they recommended to their clients based on their belief that the equity stock markets were overvalued and might decline in the future.

They allegedly ignored or did not fully understand the information on the firm’s prospectus for complex exchange-traded products including the warning against holding it as a long-term investment.

Under the SEC order, Benjamin Edwards & Company is required to pay disgorgement, prejudgment interest, and a civil monetary penalty totaling $685,134.36.

SEC allegations and order against Summit Financial Group

Summit Financial Group failed to fully implement its own policy banning volatility-linked exchange-traded products from client accounts. The firm also failed to take sufficient actions to determine whether clients continued to maintain such investment products, the SEC alleged.