Defendant Name:
Cetera Advisors, LLC
Defendant Type:
Subsidiary of Public Company
Document Reference:
court_doc119_19-cv-02461
Document Details
Legal Case Name
SEC v. Cetera Advisors, LLC, and Cetera Advisor Networks, LLC
Document Name
Final Judgment as to Cetera Advisors LLC and Cetera Advisor Networks LLC
Document Date
13-Oct-2022
Document Format
Civil Proceeding
Case Number
19-cv-02461
Federal District Court
Colorado, District of Colorado
Federal District Judge
Michael E. Hegarty
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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."
Disgorgement & Penalty Information
Monetary Penalties:
Disgorgement
Individual:
Shared:
$5,614,509.00
Shared with: Cetera Advisor Networks LLC
Civil Penalty
Individual:
$1,000,000.00
Shared:
Pre-Judgment Interest
Individual:
Shared:
$990,961.00
Shared with: Cetera Advisor Networks LLC
Related Documents:
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."
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."
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."
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."
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."
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: