Updated Friday, October 31, 2014 as of 10:26 AM ET

SEC Charges RIA With Kickback Scheme

Three advisors at a San Diego-based RIA -- including one who apparently once worked for the FBI -- are now facing SEC charges for allegedly paying themselves concealed revenue sharing fees from investments they recommended to clients.

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Comments (3)
My former B/D firm used to do the exact same for several years and managed to get away with it. They customarily would charge Wholesalers $50,000 to be given preferred treatment and access to the sales force of Independent Advisors (Registered Reps) like I was at that time. Since none of that "access" money ever trickled down to my level, I purposefully sold the products of other venders who had NOT bought into that "payola" racket. More than once I had business returned while somebody from their Back Office told me to go back to the clients and try and replace the variable annuity from a non-preferred vendor with a similar product from a designated preferred vendor. I wonder if its too late to have the SEC go after that former B/D firm of mine?
Posted by Ralph M | Wednesday, April 16 2014 at 11:54AM ET
amen now lets STOP the Banks ,Insurance Companies & Ware house folks from doing exactly this for many years. Independent Advisers finally will be the true way to go for all. >30yrs in the business & finally the true.
Posted by Daniel B | Saturday, April 19 2014 at 9:58AM ET
And yet Goldman Sachs operates with impunity.
Posted by Gary D | Monday, April 21 2014 at 12:53PM ET
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