Alpha Fiduciary Inc (AFI) an investment advisory firm, along with two of its officers, are accused of misleading clients.
According to FA-mag, the Security and Exchange Commission (SEC) alleges that between 2010 and 2013 AFI misled clients by not disclosing they were using hypothetical back-tested data to promote its Global Tactical Multi Asset Strategies (GTMACS). “In one instance, the GTMACS’s Balanced model was shown to have a 163.7 percent return between 1999 and 2012, the SEC says.”
Without admitting or denying the charges, AFI agreed to pay a $250,000 fine to settle charges.
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
If an advisor presents hypothetical data as real they may be liable for investment losses. For a free consultation with a securities attorney, please call the firm’s Chicago office at (312)238-9650.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
Tags: AFI charges, AFI fine, AFI investigation, AFI lawsuit, AFI sanction, AFI SEC, Global Tactical Multi Asset Strategies information, Global Tactical Multi Asset Strategies investigation, Global Tactical Multi Asset Strategies investment loses, Global Tactical Multi Asset Strategies lawsuit, Global Tactical Multi Asset Strategies misrepresentations, GTMACS information, GTMACS investigation, GTMACS losses, GTMACS value Last modified: December 7, 2022