trending Market Intelligence /marketintelligence/en/news-insights/trending/M0wka2NnL88tXUfWdD6Ccw2 content esgSubNav
In This List

Lefavi Wealth Management settles with SEC for allegedly defrauding clients

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Lefavi Wealth Management settles with SEC for allegedly defrauding clients

Lefavi Wealth Management Inc. agreed to settle charges brought by the Securities and Exchange Commission, which alleged the company did not disclose conflicts of interest related to its receipt of additional compensation from its recommendation and sales of alternative investments to advisory clients.

The SEC said from June 2014 to December 2016, the company invested clients' assets in alternative investments that included a 7% commission embedded in the alternative investments' share price. The regulator found that, among other things, most of the alternative investments could have been purchased at a lower price that did not include any commission or at a discounted commission for volume purchases.

The investment adviser will pay roughly $1 million in disgorgement and prejudgment interest and a civil penalty of $150,000. It also agreed to make distributions to affected clients.