Bolton Securities Corporation – Complaint Filed by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses
According to the SEC Allegations:
Bolton Securities is an SEC-registered investment adviser that manages approximately $2 billion in assets for thousands of advisory clients. As an investment adviser, Bolton Securities owes its advisory clients a fiduciary duty to act in its clients’ best interests and to fully disclose all material facts about the advisory relationship, including disclosing any conflicts of interest that might cause Bolton Securities to put its own interests before those of its clients so that its clients can decide whether to give informed consent to these conflicts. Further, Bolton Securities is forbidden from engaging in securities transactions with its own clients (commonly referred to as “principal trading”), either directly or through the use of an affiliated broker-dealer with which it is under common control, unless it makes appropriate pre-trading disclosure to clients and obtains their consent to the proposed transactions. Bolton Securities, however, violated federal law by (i) failing to tell clients about material conflicts of interest it had in advising clients to invest in or to hold mutual fund shares that paid Bolton Securities’ affiliated broker-dealer substantial amounts of fees, and (ii) engaging in principal trading with clients through its affiliated broker-dealer—which was under common control with Bolton Securities—without giving the clients proper disclosure or obtaining required consent.
By virtue of its failures to disclose material conflicts of interest, which are detailed further herein, Bolton Securities negligently breached its fiduciary duty to its advisory clients in violation of Section 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”). Further, by knowingly engaging in fixed income trades through the principal trading account of an affiliated broker-dealer that was under common control, with insufficient prior disclosure to, and no consent obtained from, its advisory clients, Bolton Securities violated Section 206(3) of the Advisers Act. Finally, by failing to adopt and to implement written policies and procedures reasonably designed to ensure that Bolton Securities disclosed the conflicts of interest and obtained the required informed client consent prior to engaging in principal trading, Bolton Securities violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.
Investors May Recover their Losses with Goodman & Nekvasil, P.A.:
If you invested, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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