Business & Tech
Stamford Investment Company Slapped with Penalty for Fees
The investment firm moved clients' money to a new mutual fund, but didn't disclose increased fees, according to the SEC.
STAMFORD, CT — A Stamford-based investment firm was ordered to pay more than $230,000 after it failed to disclose new fees while moving clients money over to new mutual funds, according to the U.S. Securities and Exchange Commission.
The SEC filed a complain in May 2016 against Momentum Investment Partners LLC, doing business as Avatar Investment Management. The SEC alleged in its complaint that the company didn't disclose the increased fees and that the investors overall strategies remained the same.
The SEC alleged that Avatar clients paid almost $111,000 in additional fees between May 2013 and March 2014.
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A final judgement was entered by Judge Vanessa Bryant in U.S. District Court against the company and CEO Ronald Fernandes.
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