SEC Charges Calvert Investment Management and Calvert Investment Distributors for Improperly Using Mutual Fund Assets to Pay Distribution Fees

Posted on May 24th, 2017 at 4:25 PM
SEC Charges Calvert Investment Management and Calvert Investment Distributors for Improperly Using Mutual Fund Assets to Pay Distribution Fees

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has ordered Bethesda, Maryland-based Calvert Investment Management and Calvert Investment Distributors to pay more than $22 million to settle charges that their open-ended mutual funds improperly were used to pay for marketing and distribution services as well as expenses in excess of annual expense caps.  Moreover, the Calvert firms used more than $14.87 million in fund assets, outside the funds’ 12b-1 plans, to pay for distribution-related services rather than making those payments out of the firms’ own assets. The money improperly distributed will be returned to the accounts of the affected shareholders.

The Calvert firms neither admitted nor denied the charges against them. The charges against the firms included violations of Section 206(2) of the Investment Advisers Act of 1940, violations of Section 34(b) of the Investment Company Act of 1940, and violations of Section 12(b) of the Investment Company Act.

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 advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory  Matters, Transition Contract Review, 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, James Eccleston, Eccleston Law LLC

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.