Navellier & Associates Ordered to Pay $31.4 Million in Connection with F-Squared Investments

Posted on June 3rd, 2020 at 4:23 PM
Navellier & Associates Ordered to Pay $31.4 Million in Connection with F-Squared Investments

From the Desk of Jim Eccleston at Eccleston Law LLC:

In a case brought by the U.S. Securities and Exchange Commission (“SEC”), a federal judge has ordered Navellier & Associates Inc. to pay $31.4 million.  Of the ordered sanctions, $28.9 million is disgorgement of proceeds gained by the firm’s fraudulent conduct.  Additionally, the firm is ordered to pay a civil penalty of $2 million and the firm’s founder, Louis Navellier, is ordered to pay a $500,000 civil penalty.  

The Order comes after the court granted partial summary judgement in favor of the SEC on its claim that Navellier violated the Investment Advisers Act of 1940 by engaging in fraudulent conduct. In an Order dated February 13, 2020, the federal court concluded that “the undisputed record shows defendants engaged in a course of business that operated a fraud or deceit upon their clients.” 

According to the SEC, Navellier defrauded investors by marketing investment products that were based on AlphaSector strategies from bankrupt financial adviser F-Squared Investments, Inc.  The SEC found that Navellier marketed those products despite the red flags in AlphaSector’s track record.  In 2014, F-Squared Investments agreed to a $35 million settlement after admitting that it made false and misleading statements to investors about AlphaSector’s past performance.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. 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, navellier, f-squared investments, sec

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