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.