Connecticut Investment Firm Charged with Misleading Investors
On July 18, 2018, the U.S. Securities and Exchange Commission (SEC) charged Temenos Advisory Inc., a Connecticut-based retail investment firm, and its chief executive officer George L. Taylor, with defrauding its investors. The SEC states that the company and its CEO placed $19 million of investor’s money into risky investments while taking large commissions off of those investments.
The SEC alleges that the firm guided advisory clients and investors, which included senior citizens and those near the retirement age, into investing into four risky, illiquid private offerings. Under the guise of providing unbiased investment advice, the firm then allegedly pocketed high commission fees without the knowledge of its investors. The SEC also alleges that the firm:
- Concealed commissions such as cash and ownership stakes in private companies they recommended
- Mislead their clients on the viability and risk of these investments
- Overbilling some of their investment clients
In a press release from the SEC, the Director of the SEC’s Boston Regional Office Paul Levenson stated “Investment advisers must put clients’ interests ahead of their own. Temenos violated that duty by placing clients in risky private placements while downplaying the risk of those investments and concealing the financial conflicts that motivated the recommendations.”
At Colling Gilbert Wright & Carter, our stockbroker fraud attorneys are here in the event that you’re taken advantage of from a stockbroker or investment firm. Unfortunately, fraud happens all too often in the financial and investment world as unsuspecting investors place their trust in those who claim to have their clients’ best interests in mind, only to lose their investments or worse.
A stockbroker or investment firm must have their client’s best interests in mind as outlined in both the state and federal securities laws and in the guidelines set by the New York Stock Exchange and the National Association of Securities Dealers. Stockbroker fraud comes in many forms. What the SEC charged Temenos Advisory Inc. with are classic cases of fraud in that they misled their clients through inaccurate claims, leaving out information, and giving false statements for the purpose of their own interests.
Other examples of investment fraud include:
- Unauthorized or excessive trading
- Misrepresenting or omissions
- Unsuitable recommendations
- Breach of fiduciary duty
Whether you’re a seasoned investor or new to the investing world it’s important that you do your due diligence and research a firm or broker before you place your trust in them. After all, it’s your hard-earned money that you’re investing and you want to make sure that you place it in the hands of those who have your best interests at heart.
If or someone you love, however, is the unfortunate victim of investment fraud, please contact our experienced attorneys today by filling out the form on this page or by calling us at 407-712-7300 to schedule your free consultation. We are an Orlando-based firm that proudly represents investors of all levels nationwide.