The Securities & Exchange Commission (SEC) announced fraud charges against Robare Group, Ltd. of Houston, Texas, alleging that they recommended clients invest in certain mutual funds without disclosing a conflict of interest–that the firm was receiving compensation from the broker offering the funds.
According to the SEC press release, co-owners Mark L. Robare and Jack L. Jones, Jr. had an incentive to recommend in the funds they were selling over other funds because the the company was receiving a percentage of every sale. During an eight year period Robare Group received over $440,000 in payments for the sale of the funds.
The SEC filing alleges that Robare Group and Robare willfully violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and that Jones aided and abetted. Per the release, the SEC Asset Managment Unit has recently stepped up enforcement to shed more light on undisclosed compensation arrangements between investment advisers and brokers.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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