Investment Adviser to Pay SEC $30 Million as Result of Fraud Charges. Exposing Misconduct.

Investment Adviser to Pay SEC $30 Million as Result of Fraud Charges

August 20, 2020

On June 5, the U.S. Securities and Exchange Commission (SEC) announced final judgment on its fraud charges against investment adviser Navellier & Associates, Inc. and its founder and chief investment officer, Louis Navellier.  Following the ruling of a federal district court in Massachusetts, the SEC receives more than $30 million in monetary relief.

The SEC alleges that Navellier & Associates defrauded clients and potential clients by providing false and misleading information in their marketing materials.  Specifically, the materials included false information regarding the performance track record of the “Vireo AlphaSector” investment strategies that the firm offered under the “Vireo” brand name.  The court found that Navellier & Associates were aware of the misleading statements but failed to inform their clients.  The court held that Navellier & Associates and Mr. Navellier violated the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.  The court ordered the defendants jointly and severally to pay disgorgement of $28,964,571, including $6,513,619 in prejudgment interest. Additionally, the court leveled $2,000,000 in civil penalties against Navellier & Associates and $500,000 against Mr. Navellier.

Read more here.
The materials on this website are for general information purposes only and should not be construed as legal advice, legal opinion or any other advice on any specific facts or circumstances. Readers should not act or refrain from acting upon this information without seeking professional advice. Transmission of information on or by use of this website is not intended to create, and receipt does not constitute, a lawyer-client relationship between the sender and receiver.
Mobile Menu
×