The SEC has charged Founders Asset Management LLC of Denver with defrauding its clients in a soft-dollar arrangement with an investment advisor, according to an SEC filing. The commission has issued $790,000 in fines against the firm and Bjorn Borgen, its former president.

The firm is accused of failing to disclose to clients that it used their brokerage commissions to pay for client referrals, failed to disclose a change in its order-execution policy and failed to obtain best execution trades, the filing says.

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