On Monday the federal court in New Haven, Connecticut, issued a verdict in the Securities and Exchange Commission’s favor against an investment adviser and its owner.
The jury found that the Connecticut-based investment advisory firm, Westport Capital Markets, LLC, and its owner, Christopher E. McClure, defrauded their clients. The firm repeatedly purchased securities that generated significant undisclosed compensation at the clients’ expense.
Previously, the court gave partial summary judgement Westport Capital and McClue were in violation of the Investment Advisers Act by aiding and abetting unauthorized principal transactions. The trail examined whether the defendants acted intentionally or not. On Monday, jurors returned a verdict in the SEC’s favor on these counts.
Adam Aderton, Co-Chief of the SEC’s Asset Management Unit stated:
Investment advisers cannot mislead their clients about conflicts of interest. Today’s jury verdict underscores the well-settled principle that investment advisers must provide accurate information so that their clients can make informed decisions.
Read More:
