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Criterion Wealth Management Securities Investigation

Criterion Wealth Management, Featured by Top Securities Fraud Attorneys, The White Law Group

SEC Reportedly Charges Criterion Wealth Management Insurance Services with Allegedly Defrauding Clients

According to the Securities and Exchange Commission this week, the regulator  charged Criterion Wealth Management Insurance Services, Inc., a Santa Clarita, California, investment advisory firm, and its then co-owners for allegedly defrauding their advisory clients.

The SEC alleges that Criterion Wealth and its co-owners purportedly breached their fiduciary duty by allegedly failing to disclose significant financial conflicts of interest when purportedly recommending investments in private real estate investment funds.

According to the complaint, between 2014 to 2017 the defendants allegedly recommended that their advisory clients invest more than $16 million in four private real estate investment funds without purportedly disclosing that the fund managers had paid them more than $1 million, which was reportedly on top of the fees that defendants were already allegedly charging their clients directly.

The SEC further alleges the defendants were purportedly incentivized to keep their clients invested in the funds, rather than allocate their capital elsewhere. The additional side compensation was purportedly recurring and depended on Criterion’s clients remaining invested. For two of the Criterion funds, this undisclosed compensation arrangement unfortunately reportedly resulted in reduced investment returns for the defendants’ advisory clients.

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This information is all publicly available and provided to you by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you are concerned about your investments with Criterion Wealth Management, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

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Tags: , , , , , Last modified: February 19, 2020