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

Document Reference: 2018-62

Document Details

Legal Case Name In the Matter of Securities America Advisors, Inc.
Document Name SEC Orders Three Investment Advisers to Pay $12 Million to Harmed Clients
Document Date 06-Apr-2018
Document Format Administrative Proceeding
File Number 3-18424
Allegation Type Investment Advisers/Investment Companies
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

(Penalty was noted in document, but no amount was listed)

Civil Penalty

Individual:     $775,000.00 Shared:    

Pre-Judgment Interest

(Penalty was noted in document, but no amount was listed)

Combined disgorgement and prejudgment interest

Individual:     $5,053,448.00 Shared:    

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."
34-101933 16-Dec-2024 Administrative Proceeding
Order Authorizing the Transfer to the U.S. Department of the Treasury of the Remaining Funds and Any Funds Returned to the Fair Fund in the Future and Terminating the Fair Fund
The Commission ordered that "the remaining funds in the amount of $180,038.92 that are infeasible to return to investors, and any funds returned to the Fair Fund in the future that are infeasible to return to investors, shall be transferred to the U.S. Department of the Treasury, subject to Section 21F(g)(3) of the Securities Exchange Act of 1934; and . . . the Fair Fund is terminated."