Wunderlich Securities, a Tennessee-based investment firm that entered the Richmond market in November, has reached a settlement with the SEC related to allegations of overcharging its clients.
According the SEC, Wunderlich, CEO Gary Wunderlich and CCO Tracy Wiswall agreed to a deal Friday that will reimburse clients and pay civil penalties for instances of overcharging for commissions and fees and taking undisclosed commissions between 2007 and 2009.
The SEC said in a cease-and-desist order that the firm willfully violated several anti-fraud and compliance provisions of securities regulations.
The SEC also said the firm failed to maintain certain written policies and procedures as required and neglected to have a proper written code of ethics during that period.
Wunderlich Securities will pay disgorgement and interest of $407,000 to repay clients. It already voluntarily refunded more than $120,000 to clients related to the overcharges.
The SEC report on the matter said the overcharges appear to have occurred primarily due to back-office errors.
Wunderlich Securities agreed to pay a $125,000 civil penalty to the U.S. Treasury. Gary Wunderlich will pay a $45,000 penalty, and Wiswall agreed to a $50,000 penalty.
The settlement allows Wunderlich and the two executives to quash the issue without admitting or denying wrongdoing.
Wunderlich Securities was founded in Memphis in 1996. According to the SEC, the firm manages about $469 million in client assets.
Wunderlich opened its first Richmond office in Innsbrook last November after repeated attempts to acquire local investment firm Anderson Strudwick never came to fruition.
Wunderlich Securities, a Tennessee-based investment firm that entered the Richmond market in November, has reached a settlement with the SEC related to allegations of overcharging its clients.
According the SEC, Wunderlich, CEO Gary Wunderlich and CCO Tracy Wiswall agreed to a deal Friday that will reimburse clients and pay civil penalties for instances of overcharging for commissions and fees and taking undisclosed commissions between 2007 and 2009.
The SEC said in a cease-and-desist order that the firm willfully violated several anti-fraud and compliance provisions of securities regulations.
The SEC also said the firm failed to maintain certain written policies and procedures as required and neglected to have a proper written code of ethics during that period.
Wunderlich Securities will pay disgorgement and interest of $407,000 to repay clients. It already voluntarily refunded more than $120,000 to clients related to the overcharges.
The SEC report on the matter said the overcharges appear to have occurred primarily due to back-office errors.
Wunderlich Securities agreed to pay a $125,000 civil penalty to the U.S. Treasury. Gary Wunderlich will pay a $45,000 penalty, and Wiswall agreed to a $50,000 penalty.
The settlement allows Wunderlich and the two executives to quash the issue without admitting or denying wrongdoing.
Wunderlich Securities was founded in Memphis in 1996. According to the SEC, the firm manages about $469 million in client assets.
Wunderlich opened its first Richmond office in Innsbrook last November after repeated attempts to acquire local investment firm Anderson Strudwick never came to fruition.