Defendant Name: Securities America Advisors, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Ladenburg Thalmann Financial Services Inc.
SIC Code: 6211
CUSIP: 50575Q10

Initial Case Details

Legal Case Name In the Matter of Securities America Advisors, Inc.
First Document Date 06-Apr-2018
Initial Filing Format Administrative Action
File Number 3-18424
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4), 207 Investment Advisers Act; Rule 206(4)-7 Investment Advisers Act

Resolutions

First Resolution Date 06-Apr-2018
Headline Total Penalty and Disgorgement $5,828,449

Related Documents:

IA-4876 06-Apr-2018 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
The SEC stated that: "These proceedings arise out of breaches of fiduciary duty, inadequate disclosures, and deficiencies in compliance policies and procedures by registered investment adviser SAA in connection with its mutual fund share class selection practices. From at least February 1, 2012 to December 31, 2016 (the "Relevant Period"), SAA invested advisory clients in mutual fund share classes that charged 12b-1 fees instead of less expensive share classes of the same funds that were available without 12b-1 fees."
2018-62 06-Apr-2018 Press Release--Administrative Proceeding
SEC Orders Three Investment Advisers to Pay $12 Million to Harmed Clients
The SEC stated that Securities America Advisors Inc. "failed to disclose conflicts of interest and violated their duty to seek best execution by investing advisory clients in higher-cost mutual fund shares when lower-cost shares of the same funds were available."