Investment Advisor Failed to Disclose Financial Benefit to Parent Company in Bond Investment

Posted on January 26th, 2016 at 11:29 AM
Investment Advisor Failed to Disclose Financial Benefit to Parent Company in Bond Investment

From the Desk of Jim Eccleston at Eccleston Law LLC:

On December 15th the SEC announced it will charge Atlantic Asset Management LLC with violations of the antifraud provisions of the Investment Advisers Act of 1940. The SEC alleges that an investment advisor, while working for Atlantic, invested clients’ funds in bonds without disclosing to its clients that the sales would benefit a broker-dealer whose parent company partially owned the firm. The SEC alleges that Atlantic invested more than $43 million of client funds in illiquid bonds issued by an entity that partially owns Atlantic. The SEC further alleges that Atlantic Asset failed to disclose those conflicts of interest to its clients. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, SEC, Atlantic Asset Management LLC, Investment Advisers Act of 1940

Return to Archive



I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y


May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.