Defendant Name: Cetera Advisors, LLC 

Defendant Type: Subsidiary of Public Company
Public Company Parent: RCS Capital Corp.
SIC Code: 6153
CUSIP: 74937W10

Initial Case Details

Legal Case Name SEC v. Cetera Advisors LLC, and Cetera Advisor Networks LLC
First Document Date 29-Aug-2019
Initial Filing Format Civil Proceeding
Case Number 19-cv-02461
Allegation Type Investment Advisers/Investment Companies
Federal District Court Colorado, District of Colorado

Violations Alleged

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

Resolutions

First Resolution Date 13-Oct-2022
Headline Total Penalty and Disgorgement $1,000,000

Related Documents:

comp24581 29-Aug-2019 Complaint
Complaint
On August 29, 2019, the SEC filed charges against Cetera Advisors LLC ("Cetera"). The SEC stated: "Cetera breached this fiduciary duty and regularly and repeatedly put its financial interests ahead of its clients. Cetera received more than $10 million from breaching its fiduciary duty and defrauding its clients."
LR-24581 29-Aug-2019 Litigation Release
SEC Charges Investment Adviser with Defrauding Its Advisory Clients
The SEC stated that "[It] charged Cetera Advisors, LLC, a registered investment adviser and broker-dealer based in Denver, Colorado, with breaching its fiduciary duty and defrauding its retail advisory clients by, among other things, failing to disclose conflicts of interest related to the firm's receipt of over $10million in undisclosed compensation."
comp24643 11-Oct-2019 Complaint
Amended Complaint
On October 11, 2019, the SEC filed an amended complaint alleging as follows against Cetera Advisors LLC ("Cetera Advisors") and Cetera Advisor Networks LLC ("Cetera Advisor Networks"): "Cetera Advisors and Cetera Advisor Networks both breached their fiduciary duty and regularly and repeatedly put their financial interests ahead of their clients. Collectively, the Defendants received more than $21 million from breaching their fiduciary duty and defrauding their clients."
LR-24643 15-Oct-2019 Litigation Release
SEC Charges Registered Investment Adviser and Broker-Dealer with Defrauding Advisory Clients
The SEC stated that: "[It] filed an amended complaint on October 11, 2019 adding Cetera Advisor Networks LLC, a registered investment adviser and broker-dealer, as a defendant in its previously filed action against Cetera Advisors, LLC for defrauding retail advisory clients."
court_doc58_19-cv-02461 29-Apr-2020 Court Docket Document
Second Amended Complaint
The SEC stated: "Cetera Advisors and Cetera Advisor Networks both breached their fiduciary duty and regularly and repeatedly put their financial interests ahead of their clients."
court_doc119_19-cv-02461 13-Oct-2022 Court Docket Document
Final Judgment as to Cetera Advisors LLC and Cetera Advisor Networks LLC
The Court stated: "Defendants Cetera Advisors LLC (“Cetera Advisors”) and Cetera Advisor Networks LLC (“Cetera Networks”) (collectively “Defendants”) . . . consented to the Court’s jurisdiction over them and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."
LR-25564 24-Oct-2022 Litigation Release
SEC Obtains Final Judgment Against Investment Advisers Charged with Defrauding Their Advisory Clients
On October 13, 2022, the SEC "obtained a final judgment against defendants Cetera Advisors, LLC and Cetera Advisor Networks, LLC, whom the SEC previously charged with defrauding their advisory clients by failing to disclose several sources of compensation."

Other Defendants in Action:

Cetera Advisor Networks LLC