Atlantic Asset Management, LLC Facing Fraud Charges
On December 15, the Securities and Exchange Commission filed charges against Atlantic Asset Management, LLC (AAM), a Stamford, Connecticut-based investment advisory firm. According to the SEC complaint, AAM allegedly committed securities fraud when they invested more than $40 million of client funds without informing the client that someone affiliated with the owners of AAM would benefit.
The accusations claim that BFG Socially Responsible Investments Ltd. (BFG) has an undisclosed capital investment and ownership interest in AAM. The SEC alleges that it was never informed of this capital contribution by GFG, in violation of securities laws. Furthermore, the SEC allegations state that BFG used its interest to dictate the ways in which AAM’s clients’ funds were invested so that its affiliates and principals benefitted from the results.
AAM is accused of knowing that the principals and affiliates of BFG would benefit from the investments but failing to disclose this to their clients. The SEC complaint states that as clients became aware of the bonds, they demanded the investments to be unwound. AAM is supposedly resisting BFG’s alleged attempts to once again invest more client funds and, because of this, BFG is trying to remove the officers at AAM and take full control of the investment advisory firm.
Meyer Wilson is actively investigating this matter and we encourage anyone who lost money with Atlantic Asset Management, LLC to contact our securities fraud lawyers. During your free case review, we will discuss your situation and determine if you have a claim. Call today.