Home Banking & Finance SEC obtains final judgments against Stamford-based Avatar Investment Management

SEC obtains final judgments against Stamford-based Avatar Investment Management

The company and its CEO, Ronald J. Fernandes, are ordered to pay more than $230,000 in restitution for undisclosed fees.

The U.S. Securities and Exchange Commission(SEC) obtained final judgments by consent against Stamford-based investment adviser Momentum Investment Partners LLC – doing business as Avatar Investment Management – and its CEO, Ronald J. Fernandes, for failing to disclose the charging of certain fees to some of the company’s advisory clients. The company and Fernandes were ordered to pay more than $230,000 in restitution.

The SEC charged Avatar and Fernandes with not disclosing that the movement of clients’ assets into new mutual funds would increase the client’s total advisory fees. Between May 2013 and March 2014, Avatar clients paid approximately $111,000 in additional fees for no additional services.

The SEC stated that Avatar and Fernandes violated multiple sections of the Investors Advisers Act of 1940. In settling the charges, neither Avatar nor Fernandes are required to admit or deny the allegations against them.

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