Maryland Bars Financial Advisor Over Excessive Fees and Unsuitable Investments
From the desk of Jim Eccleston at Eccleston Law
The Maryland Securities Commissioner has barred financial advisor Timothy Pickett and his firm, Blue Anchor Capital Management, from operating in the securities industry within the state. According to InvestmentNews, the action follows findings that Pickett overcharged clients by $65,000 and misrepresented contracted fee arrangements.
According to an amended consent order dated May 20, Pickett and his firm charged some clients management fees above the disclosed 2.5 percent annual rate, at times collecting 3 percent, and failed to consistently bill clients by agreed terms. Maryland regulators also cited Pickett for placing clients in “highly aggressive and volatile” investments that were unsuitable given their financial profiles and risk tolerance.
InvestmentNews reports that beyond the overbilling, Maryland regulators criticized the firm’s business structure.
Under the consent order, Pickett agreed to a $65,000 penalty and a permanent industry bar within Maryland. The case serves as another cautionary example of the compliance and operational risks often present in smaller, closely held advisory firms.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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