Advisor Gets Lifetime Ban, Nearly $1M Fine Over Ad Footnotes

A ruling in an SEC case has fined a longtime investment advisor nearly $1 million and barred him from the industry for life for what his lawyer says was a technical mistake in the way he footnoted magazine advertisements and provided information to Morningstar.

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Comments (3)
Apparently we're guilty until proven innocent. FINRA is methodically exterminating the small guys because they are easier targets than the 'Madoffs' in the world. The same goes for the small to medium sized B\D's. So many have consolidated to stay alive with the mounting pressure of the regulators on their backs.
Posted by Michael K | Friday, May 30 2014 at 12:30PM ET
Does this SEC action make any sense to anyone. It certainly does not seem right--a travesty of justice.

If not corrected, this is a grievous arbitrary threat to everyone in the financial services industry as there is logical explanation for the SECs ruling.

Posted by Stephen W | Friday, May 30 2014 at 3:07PM ET
Obviously, this is a terrible overreach by the SEC. So what's new?

The article seems to imply that regulators were being heavy-handed in response to Zavanelli's "being uncooperative." He was responding to their nitpicking a VOLUNTARY compliance standard. Why did they deserve any cooperation?

If the nitwits at the SEC want to improve things, perhaps they should focus on genuine wrongdoing instead of trying to knock down the good guys. Better yet, maybe they should disband, doing the investing public a tremendous service. I have yet to witness any group of financial industry regulators that did not do far more harm than good.

Rob Drury
Executive Director,
Association of Christian Financial Advisors
Posted by ROB D | Thursday, June 05 2014 at 3:44PM ET
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