Former Stamford fund pays $230k after SEC probe
A former Stamford fund manager is paying $230,000 after a U.S. Securities and Exchange Commission investigation into client complaints that they were being charged additional fees on some $11.2 million in investments, without adequate disclosure.
Momentum Investment Partners listed offices at Six Landmark Square in downtown Stamford, doing business as Avatar Investment Management under CEO Ronald J. Fernandes, who lives today in Orleans, Mass. The SEC sued in March 2016, claiming that in 2013 and 2014 Fernandes and Avatar failed to disclose to clients that the transfer of their assets into newly created mutual funds would increase their fees, with clients receiving essentially the same investment services.
Avatar is paying back about $68,000 along with a civil penalty of $125,000, with Fernandes paying a $40,000 penalty.
Alex.Soule@scni.com; 203-354-1047; www.twitter.com/casoulman