Alaska RIAs to Pay Over $400,000 to Settle Charges Related to Recruiting Investors for Fraudulent Fund

Posted on August 7th, 2019 at 3:30 PM
Alaska RIAs to Pay Over $400,000 to Settle Charges Related to Recruiting Investors for Fraudulent Fund

Two Alaska-based registered investment advisors and their firm have agreed to pay more than $400,000 to settle charges related to their recruitment of investors for a real estate fund that was running a multi-million dollar fraud.

The Securities and Exchange Commission (“SEC”) charged Michael Shamburger and Rob Wedel, and their firm, Foundations Asset Management (FAM), with failing to disclose to clients that they substantially profited by luring the clients into the fund.

Specifically, from May 2013 to June 2016, the firm and its principals failed to disclose conflicts related to its recommending investments in Alaska Financial Company III LLC (AFC III), a private real estate investment. During the same period, FAM paid about $254,000 in exchange for the firm’s recommendations to its clients.

The compensation received from FAM was higher than the firm’s typical advisory fee. Shamburger and Wedel had provided a written disclosure to some clients invested in AFC III, but the SEC determined that the disclosure acknowledgment form did not adequately address the conflicts of interest.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, alaska, RIA, fraudulent fund

Return to Archive



I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.


January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.

January 20, 2022
Edward Jones Fails To Convince Supreme Court To Review Federal Preemption of Account Fee Suit

Edward Jones & Co. failed to convince the U.S. Supreme Court to analyze how a federal securities law impacts a client dispute pertaining to fee-based accounts.

January 19, 2022
SEC Charges Texas Entities Over Oil and Gas Fraud

The Securities and Exchange Commission (SEC) has charged The Heartland Group Ventures, Heartland Production and Recovery, six other Heartland-affiliated entities, four Heartland-affiliated individuals as well as several oil and gas operators.