The Securities and Exchange Commission has filed charges against three registered representatives and an advisory firm, alleging they defrauded their customers by withholding vital information about class B shares of mutual funds.

Kissinger Advisory, William Kissinger, Bert Miller and Glenn Wilkinson are accused of repeatedly recommending that their customers invest $250,000 or more in class B shares without telling them that class A shares would produce better returns for investments exceeding $250,000.

The SEC also said IFG Network Securities, their former broker/dealer, and its president David Ledbetter failed to provide adequate supervision. The Commission alleged Kissinger, Kissinger Advisory, Miller and Wilkinson violated the Securities Act of 1933 and the Securities Exchange Act of 1934, that Kissinger violated the Investment Advisers Act and that he aided and abetted Kissinger Advisory’s violations of the Advisers Act.

Additionally, the SEC said IFG and Ledbetter violated the supervisory provisions of the Exchange Act. A hearing will be scheduled to determine the merits of the allegations and to decide whether or not to impose sanctions on the accused.

Earlier this month, Prudential Securities agreed to pay a $382,000 fine for improperly selling more than $100,000 of B shares without disclosing the existence of multiple share classes within the same fund.

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